May contracts for Brent crude saw a nearly 3% rise, reaching $102.91 per barrel, while West Texas Intermediate futures leaped 3.7%, settling at $91.4 per barrel. This recovery comes after a significant downturn on Monday, when Brent crude plummeted close to 11% to hover around $99 per barrel, a sharp drop from its peak at $112 last Friday.

“Despite the buoyancy seen on Wall Street, oil prices have rebounded as Tehran dismissed any weekend negotiations with Washington,” remarked José Torres, a senior economist at Interactive Brokers, highlighting that the potential for prolonged conflict remains a major concern for investors.

South Korea’s Kospi index initially climbed over 3% before trimming back some of its advancements to close 2.7% higher, concluding the session at 5,553.92. Meanwhile, the Kosdaq, focused on smaller companies, rose by 2.24%, finishing the day at 1,121.44.

South Korea’s Kospi had surged over 3% before paring some gains to close 2.7% higher at 5,553.92 while the small-cap Kosdaq was last up 2.24%, ending the trading day at 1,121.44.

Japan’s Nikkei 225 rose 1.43% to close at 52,252.28, while the Topix added 2.1% to 3,559.67 after Japan’s headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices and fuel subsidies.

The consumer price index fell to 1.3% last month, according to data released by Japan’s Statistics Bureau Tuesday, marking the lowest since March 2022 and below the central bank’s 2% target, down from 1.5% in January.

Australia’s S&P/ASX 200 rose by 0.16% to end the trading day at 8,379.4.

Hong Kong Hang Seng index advanced 2.39%, while the CSI 300 rose 1.28% to 4,474.72.

The gains came after U.S. President Donald Trump said Monday he had instructed the U.S. military to delay planned strikes on Iran’s power plants and energy facilities for five days, after discussions with Iranian officials.

However, Iranian state media, citing an unnamed senior security official in a Telegram post, disputed Trump’s account, denying that any talks had taken place between Washington and Tehran.

“I AM PLEASE TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST,” Trump said Monday in a Truth Social post.

Overnight in the U.S., stocks rallied. The Dow Jones Industrial Average jumped 631 points, or 1.38%, to close at 46,208.47. The S&P 500 rose 1.15% and ended at 6,581.00, while the Nasdaq Composite gained 1.38% and settled at 21,946.76.

Before Trump’s comments, posted on Truth Social early Monday, futures pointed to more losses for equity markets under siege from skyrocketing oil prices and uncertainty about the duration of the Iran conflict. But after Trump’s comments, Dow futures briefly surged more than 1,000 points.

Spot gold fell about 1.5% to $4,340.18, while spot silver prices fell nearly 3%.

—CNBC’s Anniek Bao, Sean Conlon and John Melloy contributed to this report.