Morning brief: Iran tensions rise, oil rebounds, Trump-Xi summit

Markets are walking a tightrope as geopolitical tensions collide with fragile diplomacy.

Iran’s rejection of a US-backed ceasefire and its push for control over the Strait of Hormuz have injected fresh uncertainty into global energy markets.

Oil prices are rebounding, Asian equities are mixed, and investors are closely watching the next moves from both sides.

With a Trump–Xi summit also on the horizon, the coming weeks could prove pivotal for both markets and geopolitics.

Iran rejects US ceasefire call

Iran has rejected a US-backed ceasefire proposal and is instead weighing a counteroffer that would give Tehran authority over the Strait of Hormuz.

The waterway is vital for global oil shipping, making the sovereignty demand sensitive for Washington.

President Donald Trump said earlier this week that the United States and Iran were in negotiations and suggested the strait’s control could potentially be shared.

Iran denied that any direct talks with Washington are underway.

The development underscored the gap between the two sides’ public positions.

The exchange still signals that diplomacy remains highly fragile even as both sides float proposals for ending the conflict.

Trump-Xi meeting in May

President Donald Trump will travel to Beijing on May 14-15 for a long-awaited summit with Chinese President Xi Jinping.

The meeting was pushed back about six weeks from its original late-March or early-April window after the administration chose to delay the trip amid the Iran war.

Press secretary Karoline Leavitt said Xi understood the request to postpone, while Trump later described the visit on Truth Social as a “historic” trip and a potentially “monumental” event.​​

The summit is shaping up as a key moment in US-China ties after recent trade talks in Paris aimed at clearing the way for the leaders’ meeting later this spring in China.

Asian markets remain mixed on Thursday

Asia-Pacific markets traded mixed on Thursday as investors weighed fresh uncertainty around the Iran conflict.

The cautious sentiment came as Tehran signaled that it had no intention of holding direct talks with the United States.

Japan offered the brighter tone early, with the Nikkei 225 up 0.28% and the Topix gaining 0.43%.

Australia’s S&P/ASX 200 was little changed.

South Korea lagged, with the Kospi down 1.55% and the Kosdaq barely moving, while Hong Kong’s Hang Seng pointed to a softer open at 25,268 versus the previous close of 25,335.95.

The energy prices were steady after Wall Street finished higher overnight, helping keep broader risk sentiment from deteriorating further.

Oil prices rebound

Oil prices rose early Thursday, clawing back part of the previous session’s losses as traders reassessed whether the Middle East was really moving toward de-escalation.

The development came as Iran said it reviewed, but did not embrace, a US proposal to end the war.

West Texas Intermediate briefly jumped more than $1 to $91.42 a barrel and was last up 93 cents, or about 1%, at $91.25, after falling 2.2% on Wednesday.​

The market is now caught between two competing signals: tentative diplomatic contact through Pakistan and hardline public rhetoric from both sides.

This includes fresh warnings from the Trump administration and open scorn from Iranian officials toward direct talks.​

That mix kept traders focused on supply risk in the Gulf, where any setback to diplomacy could quickly push crude higher again.