Asian shares advanced on Tuesday as investors looked for signs that the war with Iran may soon ease, while markets in the United States held relatively steady. Benchmarks in Tokyo, Seoul, Hong Kong, Shanghai, Sydney and Taipei all posted gains, reflecting cautious optimism despite ongoing volatility in energy markets.

Oil prices edged higher but remained well below their recent peaks after sharp swings earlier in the week. Prices had briefly surged to their highest levels in years on fears that the conflict could disrupt global supplies, particularly through the Strait of Hormuz, a critical route for much of the world’s oil shipments.

President Donald Trump said he believed the war was close to ending, raising hopes that energy flows from the Middle East could resume without further disruption. However, fighting intensified as both sides hardened their rhetoric, with the United States targeting Iranian vessels and Iran threatening to halt regional oil exports.

Investors remain focused on whether oil prices will stabilize. Prolonged high energy costs could strain household budgets and corporate expenses, increasing the risk of stagnating growth combined with persistent inflation across the global economy.