Global oil prices climbed further on Wednesday as uncertainty surrounding ongoing negotiations between the United States and Iran continued to weigh on market sentiment.
Crude markets extended their gains amid doubts over progress in diplomatic efforts aimed at easing tensions in the Middle East. Despite US President Donald Trump’s repeated assertions that Washington and Tehran are moving closer to a deal that could help stabilise the region and reopen the Strait of Hormuz, investors remained cautious and awaited concrete developments.
Market concerns intensified after reports from Iran suggested that communication with the United States had been suspended following Israeli military actions in Lebanon. However, Trump dismissed those reports, insisting that talks between the two sides were continuing without interruption.
Meanwhile, regional tensions remained elevated as Israel pressed ahead with operations in Lebanon and Iran launched missile strikes toward neighbouring countries. The US military also reported successfully intercepting multiple Iranian missile and drone attacks in the Gulf region and carrying out defensive strikes on Iran’s Qeshm Island.
The ongoing uncertainty surrounding a potential agreement boosted oil prices by more than one per cent, with benchmark crude contracts gaining around five per cent so far this week.
Despite geopolitical concerns, global equity markets largely advanced, driven by strong momentum in technology stocks and continued investor enthusiasm for artificial intelligence-related investments.
Asian markets posted broad gains, led by Tokyo, where major chipmakers recorded sharp increases. Taiwan’s stock market also rose significantly, supported by strong performance from semiconductor giant Taiwan Semiconductor Manufacturing Company.
Analysts noted that investors remained focused on the technology sector growth rather than geopolitical developments. Optimism was further supported by expectations of sustained AI-related spending and strong performance from major technology firms.
On Wall Street, the S&P 500 and Nasdaq reached fresh record highs, aided by a sharp rally in chipmaker Marvell Technology after Nvidia CEO Jensen Huang described the company as a potential future trillion-dollar enterprise.
Additional support for investor sentiment came from US labour market data, which showed job openings rose to their highest level in nearly two years during April. The figures have increased anticipation ahead of key employment data due later this week, which could influence the US Federal Reserve’s interest-rate decisions.
In commodity markets, West Texas Intermediate crude rose 1.2 per cent to $94.86 per barrel, while Brent crude gained one percent to reach $96.97 per barrel.
Read more: Iranian state media reports explosions heard on Iran’s Qeshm Island
