Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's account on Monday, stating no negotiations with the U.S. were underway and no meetings were scheduled. Tehran said its only discussions were with Oman over managing shipping traffic through the strait. The contradiction left traders with a genuine de-escalation signal and a reason to doubt it simultaneously.
Oil prices rebounded in early Asian trade Tuesday. Front-month Brent futures rose $1.04, or 1.24%, to $84.81 a barrel by 0800 GMT, while WTI crude added 30 cents, or 0.37%, to $80.64. Analysts at Pepperstone said the marginal gain suggests investors remain reluctant to fully price out the risk of renewed escalation, leaving the market driven by geopolitical headlines. Shipping data showed only six vessels transited the Strait of Hormuz on Monday, far below normal levels, underscoring that physical disruptions persist.
In currency markets, the dollar traded at 157.5 yen, up 0.22% on the day, after the yen rallied sharply last week following the first coordinated U.S.-Japan intervention since 1998. Japan's Finance Ministry confirmed Tokyo and Washington jointly bought yen on Friday, with Bank of Japan data suggesting Japan may have spent about $58.97 billion on the first intervention and another $36.58 billion during the joint operation. Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent both warned they would not hesitate to intervene again if needed.