Global oil prices declined sharply after signs emerged that the Iran war might be nearing an end. Brent crude, the key international benchmark, dropped about 5 percent on Sunday. By early Monday, July futures for Brent fell to 98.47 dollars per barrel, nearly 9 percent lower than a month earlier, though still more than one-third higher than before the conflict began.

Japan’s main stock index, the Nikkei 225, rose more than 3 percent in early Monday trading, setting a new record after also closing at a record high on Friday. On Sunday, former U.S. President Donald Trump said on social media that discussions with Tehran were progressing in a disciplined and constructive manner but instructed officials not to rush into any agreement.

According to June Goh, a senior oil market analyst at Singapore-based Sparta, the fundamental situation has not changed significantly, as the closure of the Strait of Hormuz continues to block the supply of 10 to 11 million barrels of crude oil per day.