Volkswacht Bodensee - Oil falls, Asian stocks climb on hopes of US-Iran Hormuz deal

The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel respectively.

The United States and Iran appear closer than ever to a deal that would end the war that has ravaged the Middle East since late February, sending energy prices soaring and stoking global inflation.

But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz.

US President Donald Trump said on Sunday he had informed US negotiators "not to rush into a deal".

"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," a post to Trump's official Truth Social account said.

Iran's Tasnim news agency said based on their information key clauses of a possible agreement remained unresolved.

One of the main sticking points has been whether Tehran is willing to hand over its stockpile of highly enriched uranium.

The release of Iran's frozen assets held under longstanding US sanctions and whether Lebanon, repeatedly targeted by Israeli strikes, will be included in any peace deal are also key issues.

Markets across Asia climbed in early trade on hopes Washington and Tehran will be able to overcome these hurdles.

Tokyo soared more than three percent in early trade on Monday, while Hong Kong and Seoul were closed for public holidays.

Shanghai inched upwards, with Taipei, Manila, Bangkok, Jakarta, Singapore, Sydney and Wellington also climbing.

Kuala Lumpur was down 0.1 percent.

"The weekend news flow has once again focused on the prospects for a negotiated deal between the US and Iran," said Chris Weston, head of research at Pepperstone.

"According to reports from Donald Trump, a memorandum of understanding has been 'largely negotiated', with details to be announced at some stage soon, although there appears to be limited urgency," Weston said.

Investors will also be keeping an eye on how the US Federal Reserve and its new chief Chair Kevin Warsh react to Personal Consumption Expenditures (PCE) data this week, as well as European inflation metrics.

"The inflation story remains central to the entire setup," said SPI Asset Management analyst Stephen Innes.

"Investors will receive another critical read on Thursday with the release of the Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge.

"After several hotter-than-expected consumer and producer inflation reports earlier this month, markets are increasingly concerned that elevated oil prices and supply disruptions tied to the Middle East conflict are beginning to seep into the broader inflation pipeline."

The conflict erupted after the United States and Israel attacked Iran on February 28, and the Islamic republic responded with missile and drone attacks across the region.

The United States and Iran have observed a ceasefire since April 8 while mediators push for a negotiated settlement, although Tehran has imposed controls on Gulf shipping and Washington has blockaded Iran's ports.

- Key figures at around 0215 GMT -

Brent North Sea Crude: DOWN 3.99 percent at $99.41 a barrel

West Texas Intermediate: DOWN 4.25 percent at $92.49 a barrel

Tokyo - Nikkei 225: UP 3.2 percent at 65,358.97

Shanghai - Composite: UP 0.3 percent at 4123.89

Hong Kong - Hang Seng Index: UP 0.9 percent at 25,606.03 (close)

Euro/dollar: UP at 1.1640 from 1.1608 on Friday

Pound/dollar: UP at $1.3480 from $1.3441

Dollar/yen: DOWN at 158.86 from 159.13 yen

Euro/pound: DOWN at 86.35 from 86.36 pence

New York - DOW: UP 0.6 percent at 50,579,70 (close)

New York - S&P 500: UP 0.4 percent at 7,473.47 (close)

New York - Nasdaq: UP 0.2 percent at 26,343.97 (close)

London - FTSE 100: UP 0.2 percent at 10,466.26 (close)

Paris - CAC 40: UP 0.4 percent at 8,115.75 (close)

Frankfurt - DAX 30: UP 1.2 percent at 24,888.56 (close)

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