Oil prices jumped, the US dollar lifted from lows and stock markets wobbled on Monday as rising tension in the Middle East kept shipping in and out of the Gulf to a bare minimum, though traders were ⁠holding out hope for a resolution.

In Hong Kong, the benchmark Hang Seng Index rose 44 points, or 0.17 percent, to open at 26,204.

The China enterprises index was 11 points or 0.1 percent, up at 8,856 the tech index was 16 points, or 0.3 percent, up at 5,059.

On the mainland, the benchmark Shanghai Composite Index opened up close to two points, or 0.05 percent, at 4,053.

The Shenzhen Component Index opened down 14 points, or 0.1 percent, at 14,870 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.57 percent at 3,657.

In Tokyo, the Nikkei Stock Average opened up 345 points, or 0.59 percent, at 58,821.

The benchmark gathered steam to be 587 points, or 1 percent, up to 59,062 at one point before noon.

In Seoul, the Korea Composite Stock Price Index opened up 22 points, or 0.36 percent, at 6,213.

The Kospi's gains more than doubled to be 71 points, or 1.15 percent up to 6,262 at one point before lunch.

The ceasefire in the US-Israeli war on Iran, due to run until Tuesday, was in doubt after the American forces seized an Iranian cargo ship and Tehran's top military command vowed to retaliate.

Iran has reimposed its de facto closure of the Strait of Hormuz, though Kpler data showed that more than 20 vessels carrying oil products, metals, gas and fertiliser passed through it on Saturday, the busiest day for the chokepoint since March 1.

Brent crude futures jumped about 6 percent to US$96 a barrel in early Asia trade.

The dollar, which sold off sharply on Friday when the strait briefly opened, rose slightly.

"The headlines look bad; it looks like there's disagreement ... which has led to a little bit of re-escalation," said ⁠Damien Boey, portfolio strategist at Wilson Asset Management in Sydney.

"But I think, ultimately, both sides want to be able to do a deal – that's part of the reason why the market's optimistic and not selling off too much."

Iran rejected new peace talks with the United States, its state news agency reported on Sunday, hours after US President Donald Trump said he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms. (Agencies)



Edited by Azam Khan