Asian equity markets opened higher on Monday, driven by reports of tangible progress in diplomatic negotiations between the United States and Iran.
The improved geopolitical outlook reduced risk aversion across the region, providing a tailwind for regional indices as investors digested the latest developments in the Middle East.
The positive sentiment extended to commodity markets, where crude oil prices retreated from recent levels.
The pullback in energy reflects a repricing of the geopolitical risk premium that has supported prices amid ongoing tensions.
As diplomatic channels appear to be yielding results, the immediate threat of supply disruption or escalation-driven spikes has diminished, allowing market forces to dominate pricing.
This development follows a week of heightened sensitivity to US-Iran relations.