Hopes for a resolution remain elusive, with tensions instead intensifying over the past 24 hours after Donald Trump stepped up his rhetoric towards Iran. The escalation has fed directly into energy markets, where Brent crude has climbed to around $110 a barrel, an increase of roughly 8%, underscoring persistent concerns over supply, according to AzerNEWS, citing Aljazeera.

Despite this, financial markets are showing signs of recovery after the sharp sell-off seen a day earlier. While several regional exchanges, including Singapore, are closed for the Easter holiday, key markets most exposed to energy dynamics are rebounding. South Korea’s KOSPI has risen by about 3%, while Japan’s Nikkei 225 is up roughly 1%.

Investor sentiment appears to be shifting in response not simply to geopolitical tensions, but to evolving expectations around energy flows. In particular, ongoing talks involving Iran and Oman, alongside reports of a draft proposal concerning transit through the Strait of Hormuz, are helping to ease fears of major supply disruptions.

This is especially significant for Asian economies, many of which depend heavily on Middle Eastern energy imports. For now, markets seem to be reacting less to the broader crisis and more to the perceived stability—or instability—of supply routes.

The result is a partial reversal of earlier losses, though questions remain over how durable this rebound will be and whether proposed arrangements can be effectively implemented. For the moment, however, the prospect of steadier energy flows is providing a measure of reassurance to investors.