Oil prices rose and equities were mixed as investors tracked developments in the Middle East war after Iranian officials were said to have replied to US demands to end a conflict that has sparked warnings of an unprecedented energy crisis, reports AFP.

“Pressure on energy prices, shipping flows and broader financial conditions remains one of the few meaningful sources of leverage (Iran) retains,” said Saxo Markets’ Charu Chanana.

“There is therefore little incentive to relinquish that leverage prematurely, particularly if market stress strengthens its negotiating position.

“It would be imprudent to assume diplomacy is absent simply because it is not visible. In conflicts of this nature, public rhetoric and private negotiation often diverge materially.

“Markets understand this dynamic, and they also tend to inflect before the political endgame is formally in place.”

With investors holding on to hope that a deal can be struck, oil prices have stabilised this week, with Brent sitting just above $100 and WTI around $90. Equities were also less volatile.