Oil prices have hit one-month highs today before scaling back as Iran said diplomatic exchanges with the United States were ongoing via mediators to dial back renewed conflict in the Middle East, AFP reports.

That helped give a positive tone to sentiment on Wall Street, while European equity markets largely stabilised.

However, Asian stock markets ended the day mostly lower under the weight of higher oil prices which briefly shot above $91 per barrel, alongside lingering concerns that the AI sector may be overbought.

“The Iran war has escalated and driven oil prices back above $90 a barrel,” noted Russ Mould, investment director at AJ Bell.

“That means inflation fears are back on the table.”