Global oil prices moved higher over the weekend as stalled peace talks between the United States and Iran dampened hopes of a near-term resolution to the conflict.

Brent crude surged more than 2 per cent on Sunday, before easing slightly to trade at around $106.99 per barrel by early Monday, Al Jazeera reported. The gains came after expectations of a second round of ceasefire negotiations between Washington and Tehran faltered.

Despite the geopolitical uncertainty, Asian equity markets opened on a positive note. Japan’s Nikkei 225 rose about 0.9 per cent, while South Korea’s KOSPI advanced 1.5 per cent in early trading.

Diplomatic efforts appeared to lose momentum after US President Donald Trump cancelled a planned visit to Pakistan by envoys Steve Witkoff and Jared Kushner. The decision followed the departure of Iran’s foreign minister Abbas Araghchi from Islamabad before any direct engagement could take place.

Araghchi has since travelled to Russia, arriving in Saint Petersburg for talks with President Vladimir Putin, as Tehran explores alternative diplomatic avenues to break the impasse. His visit follows a brief stop in Oman, highlighting intensified regional consultations.

The uncertainty comes amid a fragile ceasefire between the US and Iran. Trump last week announced an extension of the two-week truce, though no clear timeline has been set for a comprehensive agreement.

Meanwhile, tensions in the Strait of Hormuz continue to disrupt global energy flows. Iranian threats targeting commercial shipping have significantly reduced traffic through the vital waterway, which typically carries around one-fifth of the world’s oil and natural gas supplies.

According to maritime data, only 19 commercial vessels passed through the strait on Saturday, a sharp decline from the pre-conflict average of around 129 daily transits.

Analysts warn that continued disruption in the region could keep oil prices elevated, even as broader financial markets attempt to look past the geopolitical risks.

Indian equity benchmarks opened on a firm note on Monday, supported by positive global signals and broad-based buying across key sectors.

The 30-share BSE Sensex advanced around 0.6 per cent to trade at 77,121.97 in early deals, gaining roughly 457 points. The broader Nifty 50 also moved higher, rising 150 points, or 0.62 per cent, to 24,047.

Markets were buoyed by gains in sectors such as real estate, pharmaceuticals, information technology, automobiles and banking. Sectoral indices reflected the momentum, with Nifty Realty and Nifty Pharma leading the rally, followed by IT, auto and PSU banking stocks.

In contrast, some financial stocks, including Axis Bank, Shriram Finance and Bajaj Finance, faced selling pressure and featured among the early laggards.

Broader markets outperformed the benchmarks, with midcap and smallcap indices climbing up to 1 per cent. Meanwhile, the India VIX, a gauge of market volatility, eased more than 2 per cent to 19.24, indicating relatively calmer investor sentiment.

Analysts noted that the Nifty remains in a largely sideways to slightly negative trend, with immediate support seen in the 23,800–23,900 range and resistance near 24,200. They cautioned that a decisive breakout above resistance levels would be needed for sustained upside.

Domestic sentiment has been aided by developments such as the India–New Zealand free trade agreement and ongoing deal activity, including Sun Pharma’s acquisition of Organon assets. However, global factors continue to play a crucial role.

Investors are closely monitoring the outcome of the upcoming US Federal Reserve policy meeting, key macroeconomic indicators and earnings from major global technology firms, all of which are expected to influence market direction.

Rising crude oil prices remain a concern, with Brent crude trading above $107 per barrel and US West Texas Intermediate also posting sharp gains. Persistent geopolitical tensions, particularly in the Middle East, and recent weakness in the rupee may keep volatility elevated in the near term.

Elsewhere in Asia, markets showed a mixed trend. Japan’s Nikkei surged nearly 2 per cent, while South Korea’s KOSPI also recorded strong gains. Hong Kong’s Hang Seng edged marginally higher.

On Wall Street, US indices ended the previous session in positive territory, with the S&P 500 rising 0.80 per cent and the Nasdaq gaining 1.63 per cent, lending further support to global risk sentiment.

With IANS inputs

The Indian rupee slipped further in early trading on Monday, extending its losing streak to five consecutive sessions amid sustained demand for the US dollar and growing global uncertainty.

At the interbank foreign exchange market, the rupee opened at 94.25 against the US dollar before weakening slightly to 94.27, marking a decline of 11 paise from its previous close of 94.16 on Friday.

Currency traders said the rupee has come under pressure due to a mix of domestic and international factors, including rising crude oil prices and a perceived easing of regulatory controls by the Reserve Bank of India. Heightened geopolitical tensions have also pushed investors towards safer assets, boosting demand for the dollar.

The dollar index, which measures the strength of the US currency against a basket of six major currencies, edged down 0.09 per cent to 98.44. However, this offered only limited support to the rupee as broader market sentiment remained cautious.

Global oil benchmark Brent crude rose 1.16 per cent to USD 106.55 per barrel in futures trading, adding to concerns for oil-importing countries such as India and putting additional pressure on the domestic currency.

Market participants noted that foreign institutional investors have resumed selling भारतीय equities after a brief buying phase, reflecting a shift in sentiment amid persistent geopolitical risks. Data showed overseas investors offloaded shares worth Rs 8,827.87 crore on Friday.

Despite the near-term weakness, India’s foreign exchange reserves have climbed above USD 703 billion as of mid-April, providing a buffer against external shocks.

According to Amit Pabari, managing director of CR Forex Advisors, the rupee is likely to remain under pressure in the short term. While a softer dollar may offer some relief, uncertainty continues to dominate global markets.

He added that the currency could find support in the 92.80–93.20 range, while movements between 93.50 and 94.50 are expected to define its near-term trajectory.

Meanwhile, domestic equity markets showed resilience. The benchmark BSE Sensex rose 518.96 points, or 0.68 per cent, to 77,183.17, while the broader NSE Nifty gained 131.30 points, or 0.55 per cent, to 24,029.25 in early trade.

With PTI inputs