San Francisco Frontiers - Stocks rise, oil slips on hopes for Mideast peace deal

Frankfurt led European stock markets higher in midday deals, gaining nearly one percent.

London edged up just 0.1 percent, however, as a retreat by oil prices from $100 a barrel weighed on share prices of energy majors BP and Shell.

Asia's leading stock markets closed with sizeable gains, while the dollar, seen as a haven in times of market turmoil, dropped against its main rivals.

The United States said "the ball is in the Iranian court" on ending the Mideast conflict as diplomats accelerated efforts for a new round of peace talks after weekend negotiations failed to produce a deal.

"Stocks saw an upswing while oil prices took a dip following President Donald Trump's suggestion to reopen talks with Iran, sparking optimism for a potential agreement that might alleviate tensions in the Middle East," said Patrick Munnelly, a market strategist at Tickmill Group.

Trump said Iranian representatives had called Washington since a US delegation returned empty-handed from negotiations in Islamabad.

"They'd like to make a deal. Very badly, very badly," Trump told reporters.

At the same time, the US has implemented a naval blockade of Iranian ports at the Strait of Hormuz, through which one-fifth of world oil passes.

The International Energy Agency warned Tuesday that demand for crude would likely see the biggest slump in the second quarter since the Covid pandemic slammed the global economy in 2020.

Surging prices will force many countries and industries to curb oil use, and "demand destruction will spread as scarcity and higher prices persist", the agency said in its monthly report.

Not everyone was losing out. Major oil producer Russia almost doubled earnings from crude exports in March as Moscow was granted sanctions relief, the IEA reported.

The country earned $19 billion last month as daily crude and oil product exports rose to 7.1 million barrels.

The United States eased some restrictions on sales of Russian crude imposed over its war against Ukraine, allowing countries facing tight supplies to purchase oil that was already at sea until April 11.

British energy giant BP meanwhile said that its oil trading operations had been "exceptional" in the first quarter as the Middle East war triggered volatility on global markets.

Crude futures have peaked at almost $120 a barrel during the war from around $72 on the conflict's eve.

Investors are also keeping an eye on the flood of first-quarter earnings being released this week and next for signs of how the Mideast war is impacting corporate bottom lines.

French luxury conglomerate LVMH reported Monday that sales fell six percent in the first three months of the year, saying the war in the Middle East depressed business in the region.

Its shares were down 2.4 percent on the Paris stock exchange.

- Key figures at 1045 GMT -

Brent North Sea Crude: DOWN 0.3 percent at $99.10 a barrel

West Texas Intermediate: DOWN 1.7 percent at $97.42 a barrel

London - FTSE 100: UP 0.1 percent at 10,589.96 points

Paris - CAC 40: UP 0.5 percent at 8,274.47

Frankfurt - DAX: UP 0.9 percent at 23,948.21

Tokyo - Nikkei 225: UP 2.4 percent at 57,877.39 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 25,872.32 (close)

Shanghai - Composite: UP 1.0 percent at 4,026.63 (close)

New York - Dow Jones: UP 0.6 percent at 48,218.25 (close)

Euro/dollar: UP at $1.1793 from $1.1761 on Monday

Pound/dollar: UP at $1.3550 from $1.3507

Dollar/yen: DOWN at 158.87 yen from 159.41 yen

Euro/pound: DOWN at 87.05 pence from 87.08 pence

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W.Carter--SFF