Asia markets set to open broadly higher as oil prices slide on U.S.-Iran peace hopes

Asia-Pacific markets were set to open broadly higher Tuesday as oil prices fell on renewed hopes for a breakthrough in the U.S.-Iran peace negotiations.

President Donald Trump on Monday said negotiations with Iran were “proceeding nicely,” though he warned that the U.S. could resume attacks if the talks failed.

Oil prices declined further after Trump’s comments. West Texas Intermediate futures for July fell 5.61% to $90.99 per barrel as of 7:37 p.m. ET. International benchmark Brent futures for July fell about 7% to close at $96.14 per barrel.

In a sign of how tenuous the negotiations were, the U.S. Central Command said that it conducted “self-defense strikes” targeting Iranian missile launch sites and boats attempting to lay mines in the south of the Islamic Republic.

As the conflict wore on, Tehran appeared to be “blinking” over the Strait of Hormuz, ex-CIA director David Petraeus told CNBC’s Lisa Kim at the UBS Asian Investment Conference on Monday.

Japan’s Nikkei 225 was poised to rise, with the Chicago futures contract at 65,290 and its Osaka counterpart last trading at 65,460, compared with the index’s previous close of 65,158.19. The benchmark breached 65,000 for the first time Monday in holiday-thinned Asia trading.

Hong Kong’s Hang Seng index futures were at 25,430, lower than the index’s last close of 25,606.03 on Friday.

In Australia, futures last traded at 8,735, while the S&P/ASX 200 closed at 8,692.