Oil prices fell Wednesday while stock markets diverged over conflicting headlines on talks between Iran and the US to reopen the Strait of Hormuz to Gulf crude shipments.

European stock indexes gave up some recent gains on Tuesday and oil prices rose after new US strikes in southern Iran dampened investors' hopes that a US-Iran peace deal could be imminent.

Oil prices rose on Tuesday and stocks were mixed as investor optimism over an imminent US–Iran peace deal was tempered by new US strikes in the Middle East.

The benchmark indexes removed PT Dian Swastatika Sentosa from its large-cap index and dropped PT Daaz Bara Lestari, PT Hillcon and PT Mulia Industrindo from the small-cap index.

Stocks surged on Monday while the US dollar and oil prices slid as the prospect of a deal to end the Iran war buoyed risk appetite although a lack of clarity over when the Strait of Hormuz would open kept enthusiasm in check.

Asian stock markets rose Friday as optimism over US-Iran talks buoyed equities, though higher oil prices kept inflation concerns in focus.

Incoming Federal Reserve chair Kevin Warsh will be sworn in at the White House on Friday, taking the reins of the US central bank as it faces unprecedented pressure from President Donald Trump to cut interest rates.

The Middle East war is driving up the cost of public debt in rich countries, which could jam state budgets and push governments to unfold austerity policies, economists warn.

The US dollar hit a six-week high on Wednesday as investors came to terms with the possible need for higher interest rates to tackle inflation resulting from the Iran war.

The benchmark index was down 1.85 percent on Monday and plunged again by more than 3 percent in the morning trading session on Tuesday.

The President is expected to outline the broader stabilization strategy before lawmakers in the coming days, according to the finance minister.

Bonds from Tokyo to New York extended losses on Monday as inflation fears stoked investor wagers on rate hikes from global central banks. G7 finance ministers in a meeting in Paris looked to find common ground to tackle imbalances from the selloff.

In a House or Representatives hearing on Monday, Bank Indonesia (BI) Governor Perry Warjiyo said “we believe” the rupiah will end up averaging around Rp 16,800 per United States dollar, within the Rp 16,500 to Rp 16,900 target range set in the 2026 state budget.  

The Indonesia Stock Exchange (IDX) Composite index plunged as the market opened on Monday, extending its downward trend following the MSCI index rebalancing announced last week.

Countries are tapping into oil inventories and strategic reserves at a "record pace" due to the "unprecedented" supply disruptions caused by the Middle East war, the International Energy Agency said Wednesday.

Buyers in Indonesia, the world's second-largest wheat importer, last week signed deals to purchase at least 150,000 tonnes of new-crop Black Sea wheat for July shipment, while Thai millers booked 125,000 tonnes of US wheat, two Singapore-based traders said.

The benchmark index dropped 1.98 percent to 6,723.32 when the market closed on Wednesday. It has declined by more than 20 percent since the beginning of the year.  

Oil prices climbed on Tuesday as US-Iran talks stalled, while markets were mixed as traders appeared to shrug off uncertainty over the 10-week-old war.

Japan and the US reaffirmed their close cooperation in dealing with exchange rate moves, including on currency intervention, Japanese Finance Minister Satsuki Katayama told reporters after a meeting in Tokyo with her US counterpart, Scott Bessent, on Tuesday.

The dollar climbed in Asia on Monday on signs that talks between the United States and Iran were deadlocked, leaving the vital Strait of Hormuz all but shut and sending oil prices higher.

Oil prices rose and stocks slipped as the US and Iran exchanged fire in the Middle East, though many markets in Asia were still heading for stellar weekly gains as AI demand swept up chipmakers.

Asian stocks soared to record highs on Thursday while the US dollar slipped and oil nursed steep losses as traders embraced the prospect of a peace deal in the Middle East, although the fate of the critical Strait of Hormuz remains unresolved.

Oil prices extended losses and stocks rallied Wednesday on fresh hopes for an end to the Iran war and the reopening of the Strait of Hormuz, while Samsung blasted past the $1 trillion valuation mark as the AI tech boom continued apace.

Shares edged higher while oil prices flatlined in Asia on Monday as investors drew comfort from signs of patchy progress in settling the Middle East conflict at the start of a week packed with earnings and key economic data.

Saudi Arabia, Russia and five other OPEC+ countries increased their oil production quota on Sunday in an expected move aimed at demonstrating continuity at the cartel after the shock withdrawal of the United Arab Emirates.

Brent oil futures soared another 7.6 percent to US$119.69, the highest price since the early days of the Ukraine war in 2022.

Euro zone bond yields hit multi-week highs on Tuesday after a survey showed euro zone consumers expecting higher inflation, prompting markets to raise the likelihood of a hike in interest rates by the European Central Bank in the coming months.

The index has fallen 18.21 percent from its position at the start of the year, when the market closed on Tuesday, marking the steepest decline among Asian bourses.  

Oil prices edged up and stocks wavered Tuesday as Donald Trump weighed an Iranian proposal that would reportedly re-open the Strait of Hormuz and end the eight-week-old war.

Oil climbed on Monday as stalled US-Iran peace talks prolonged the disruption of Middle East energy exports, while renewed excitement about artificial intelligence spending drove up chip stocks at the beginning of a week where war, central banks and tech earnings are in focus.