Oil prices fell more than 5%, and Asian shares gained on Wednesday (March 25) over the prospect of a de-escalation of the Iran war and negotiations between the United States and Iran.

Tokyo’s Nikkei 225 was up 2.8% to 53,721.30 in early trading. South Korea’s Kospi gained 3.1% to 5,728.22. Hong Kong’s Hang Seng rose 1.2% to 25,374.95, while the Shanghai Composite index was 0.9% higher at 3,914.09.

The administration of U.S. President Donald Trump is said to have offered a 15-point ceasefire plan to Iran. Mr. Trump’s claims of progress being made from talks with Iran this week and his postponement on Monday of a deadline to “obliterate” Iran’s power plants over the reopening of the Strait of Hormuz have also fuelled optimism that an end to the Iran war could come soon.

– AP