Asian shares mostly gain and oil prices fall after Trump says peace talks on Iran war proceeding

TOKYO, May 25, (AP): Asian shares mostly rose Monday and oil prices plunged after U.S. President Donald Trump said talks on ending the war with Iran are progressing. Japan's benchmark Nikkei 225 surged 2.8% to 65,130.03. Australia's S&P/ASX 200 added 0.4% to 8,692.00. The Shanghai Composite gained 0.8% to 4,143.97. Trading was closed in South Korea and Hong Kong for holidays marking Buddha's birthday.

Markets will be closed in the US on Monday for Memorial Day. Trump said negotiations with Iran were "proceeding in an orderly and constructive manner.” Meanwhile, regional officials told The Associated Press on Sunday that the United States is close to reaching a deal with Iran that would end the war, reopen the Strait of Hormuz and see Iran give up its stockpile of highly enriched uranium, Reopening the Strait of Hormuz will help decide the direction of oil prices.

The closure has prevented oil tankers from exiting the Persian Gulf and delivering crude to customers worldwide. Japan, for instance, imports almost all its oil, most of it through the strait. "Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes said in a commentary.

Early Monday, benchmark US crude was down $5.52 at $91.08 a barrel. Brent crude, the international standard, sank $5.56 to $97.08 a barrel. In currency trading, the US dollar declined to 158.91 Japanese yen from 159.16 yen. The euro cost $1.1639, up from $1.1605. Friday on Wall Street, stocks finished their eighth straight winning week, the best such streak since 2023.

That’s even though a survey showed US consumers are feeling even worse about the economy than before. The S&P 500 added 0.4% and pulled closer to its all-time high set in the middle of last week. The Dow Jones Industrial Average rose 0.6%, and the Nasdaq composite gained 0.2%. Recent earnings reports from US companies that topped analysts’ expectations also helped markets.