On Tuesday, the Asia-Pacific stock markets mostly ended in the red as investors closely monitored the ongoing negotiations between the United States and Iran.

Reports emerged that U.S. President Donald Trump, alongside his national security team, deliberated on Iran’s offer to reopen the Strait of Hormuz. This proposal hinges on the U.S. lifting its blockade and ceasing hostilities, as stated by White House press secretary Karoline Leavitt.

Despite this potential opening, Trump has insisted that any easing of sanctions would only occur once a deal is deemed “100% complete,” casting doubt on whether he will embrace this opportunity for reducing tensions in the conflict that has persisted for two months.

During a press briefing on Monday afternoon, Leavitt confirmed, “The president has indeed met with his national security team this morning,” in response to inquiries about the reported negotiations.

In Japan, the Nikkei 225 index fell by 1.02%, closing at 59,917.46 after hitting a record high the previous day, whereas the Topix index saw a 0.99% increase, closing at 3,772.19. Meanwhile, South Korea’s Kospi index rose by 0.39% to 6,641.02, but the smaller Kosdaq index experienced a decline of 0.86% to settle at 1,215.58.

Additionally, Japan’s central bank decided to maintain its policy rate at 0.75% on Tuesday. The bank also revised its inflation forecasts upward, citing increased supply-side risks due to the ongoing conflict with Iran.

In Australia, the S&P/ASX 200 lost 0.64% to 8,710.7.

Hong Kong’s Hang Seng index lost 0.48% as o its last hour of trading, while the CSI 300 declined 0.27% to 4,758.21.

Shares of Chinese optical computing firm Lightelligence surged over 380% on its debut on Tuesday. The company sold 13.8 million shares at HK$183.20 each, raising about HK$2.53 billion ($323 million) in gross proceeds, according to its filing.

Shares of Contemporary Amperex Technology fell 7% after the company kicked off a roughly $5 billion share offering in Hong Kong.

India’s Nifty 50 was down 0.28% as of 3:25 a.m. ET, while the BSE Sensex lost 0.47%.

U.S. futures edged higher, with Dow Jones Industrial Average futures adding 0.12%, or 57 points. S&P 500 futures rose 0.14%, while Nasdaq 100 futures added 0.15%.

Overnight in the U.S., the S&P 500 and the Nasdaq Composite rose to new record highs but gains were limited as stalled Iran peace talks and a fresh escalation in the Strait of Hormuz pushed oil prices higher.

The broad market index added 0.12% and closed at a record level of 7,173.91. The Nasdaq Composite gained 0.20% and notched a closing record of 24,887.10. Both indexes also reached new all-time highs in the session. The Dow Jones Industrial Average fell 62.92 points, or 0.13%, to settle at 49,167.79.

— CNBC’s Sean Conlon and Yun Li contributed to this report.