Oil prices climb as Trump issues warning to Iran ahead of talks

Oil markets drew attention on Tuesday after Donald Trump stepped up warnings against Iran, unsettling trading during a holiday-thinned session across Asia and the United States.

West Texas Intermediate pared earlier gains after climbing more than one per cent to trade near $64 per barrel, while Brent crude slipped slightly to just below $69.

Trump cautioned Tehran about the “consequences of not making a deal” ahead of scheduled talks between Washington and Iran in Geneva. The US president has previously threatened military action against the Islamic Republic, initially over its violent response to anti-government protests and more recently over concerns surrounding its nuclear programme.

The remarks rippled through largely quiet markets as several Asian financial centres including Shanghai, Hong Kong, Taipei, Seoul and Singapore — remained shut for the extended Lunar New Year holiday. US markets were due to reopen later on Tuesday following the Presidents’ Day break.
Gold prices fell below $5,000 an ounce, while silver dropped three per cent. In Japan, stocks closed 0.4 per cent lower after data showed the world’s fourth-largest economy recorded weak growth in the final quarter of last year.

Brokerage firm Monex said the absence of US market activity was likely to keep Japanese trading subdued, adding that a softer yen with the dollar trading in the mid-153 range could lend support to export-focused stocks.

Australian shares edged up 0.2 per cent after mining giant BHP posted an increase in half-year net profit, driven by strong demand for copper amid global electrification efforts. Bangkok rose 0.5 per cent, brushing off weak growth data and extending gains after the Bhumjaithai Party’s surprise election victory earlier in the month.

Markets in Mumbai and Manila also advanced, while Wellington slipped 0.5 per cent.

Investors are also watching developments in artificial intelligence, as technology executives and world leaders gather at the AI Impact Summit in New Delhi. The five-day event, billed as its largest yet, aims to outline a shared global roadmap for AI governance and cooperation.

US Federal Reserve officials Michael Barr and Mary Daly are expected to speak on AI later on Tuesday, according to Bloomberg News. While booming demand for generative AI has lifted tech-sector profits, concerns continue to mount over its broader social and environmental implications.