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Stocks rose and crude oil fell as President Donald Trump signalled the Iran war may be nearing an end, helping boost sentiment after Monday’s selloff in risk assets. The sharp reversals indicate just how sensitive markets have become to headlines from the Middle East conflict.

Crude on Monday surged above $100 a barrel for the first time since 2022, with the US–Israeli war against Iran showing no sign of easing. Brent jumped as much as 29% to $119.50 a barrel, adding to last week’s 28% surge, as the Iran conflict entered a second week.

Stocks stabilised at the end of a volatile week as investors reassessed the impact of the Middle East conflict and a weaker dollar supported risk sentiment. Asian equities edged up 0.2%, reversing earlier losses and led by gains in Chinese technology stocks.