Global oil prices dropped sharply amid fragile hopes for a deal to end the US- and Israel-led war against Iran.
Brent crude, the main global oil benchmark, fell about 5% on Sunday after US President Donald Trump sent mixed signals on the outlook for a permanent end to the conflict.
Brent crude futures for July delivery stood at $98.47 a barrel at 1:05 GMT, down about 9% from a month ago but still a third higher than before the war erupted.
Japan's Nikkei 225 index rose more than 3% in morning trading, hitting an all-time high after closing at a record high on Friday.
In a social media post on Sunday, Trump said talks with Tehran were proceeding "in an orderly and constructive manner," but he instructed officials "not to rush into a deal." "Both sides must take their time and get it right. There can be no mistakes!" Trump wrote on Truth Social.
Trump's statement came after he raised hopes for a breakthrough on Saturday, saying a deal had been "largely negotiated," with terms including the reopening of the Strait of Hormuz.
"Essentially, there is no change in the big picture, where 10-11 million barrels of crude oil per day continue to be locked up for every day the Strait of Hormuz is closed," June Goh, senior oil market analyst at Sparta in Singapore, told Al Jazeera. "However, the market is expecting 100 million barrels of crude oil from stuck tankers to be released once a deal is signed."
Goh said the market could remain tense for some time after any deal is finalized. "Sparta estimates it will still take three to six months for things to return to normal, including the time needed to bring production and refineries back online."
Iran has effectively blocked the Strait of Hormuz since the war began in late February, disrupting about one-fifth of global oil trade. The US imposed its own blockade on Iranian ports from mid-April, further disrupting commercial shipping in the waterway. In his Sunday Truth Social post, Trump said the US blockade would remain "in full effect until a deal is reached, ratified, and signed."
