By Kimberley Kao


Oil rose while Asian markets remained cautious early Friday despite President Trump saying the cease-fire between Israel and Lebanon will be extended, as U.S.-Iran talks remain in limbo.

The U.S. "is going to work with Lebanon in order to help it protect itself from Hezbollah," Trump said on Truth Social. "The Ceasefire between Israel and Lebanon will be extended by THREE WEEKS," Trump said.

However, the lack of progress on resuming U.S.-Iran peace talks kept markets on edge. Oil rose amid the continued closure of the Strait of Hormuz.

Front-month West Texas Intermediate crude oil futures rose 1.7% to $97.47 a barrel, while front-month Brent crude oil futures rose 1.7% to $106.86 a barrel, according to ICE data.

"Developments in the Middle East remain the key issue on energy markets," Commerzbank Research analysts said in a note. "Unless there are signs that the Strait of Hormuz is set to reopen, the price of Brent crude is likely to remain above $100," they said.

Trump said he ordered the U.S. Navy to "shoot and kill" any Iranian boat laying mines in the strait, in a sign of potential re-escalating tensions. While the military is concerned about Iran's ability to mine the crucial waterway, so far officials have said that mines are more of a nuisance than they are a threat to shipping there.

"Iran appears to be rejecting further peace talks with the U.S. for now, limiting relief for risk sentiment," despite the Israel-Lebanon extended cease-fire, said Lloyd Chan, senior currency analyst at MUFG.

Australia's S&P/ASX 200 benchmark index was last down 0.3% and South Korea's Kospi was 0.1% lower, while Japan's Nikkei Stock Average rose 0.55%, led by chip stocks,

U.S. futures were mixed. Futures tied to the S&P 500 and Nasdaq were 0.2% and 0.7% higher, respectively, while Dow Jones Industrial Average futures were down 0.1%.

"All eyes will remain today on signals from Washington and Tehran, as well as shipping flows, with any disruption to the Strait of Hormuz likely to keep oil prices elevated and weigh on global growth," the UOB Global Economics & Markets Research team said.


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

04-23-26 2137ET