Asia records, oil surges as Iran seizes ships

Asian markets mostly advanced Monday, with Japan's Nikkei 225 gaining 0.53% to reach a record high and South Korea's Kospi jumping 1% to also hit an all-time level, even as diplomatic efforts between the United States and Iran stalled again. The upward momentum came despite U.S. President Donald Trump cancelling plans to send envoys Steve Witkoff and Jared Kushner to Pakistan for a second round of peace negotiations with Iran, citing wasted travel time and internal confusion within Iran's leadership. Australia's S&P/ASX 200 bucked the trend, sliding 0.54%, while U.S. futures pointed lower ahead of the trading day. Oil prices surged nearly 2% as geopolitical tensions escalated further. International benchmark Brent crude rose to $107.49 per barrel, its highest level since early April, while U.S. crude climbed to $96.17-$96.19 per barrel. The Strait of Hormuz, which handles roughly a fifth of the world's oil flows, saw heightened disruption after Iran's Revolutionary Guard reportedly boarded two cargo ships near the strategic sea lane. Goldman Sachs revised its fourth-quarter oil forecasts upward, predicting Brent at $90 per barrel and WTI at $83 per barrel, citing unprecedented supply shock risks from the ongoing tensions. In Seoul trading, the Kospi opened 1.08% higher at 6,545.58 points, briefly touching an intraday record of 6,557.78, as investors shrugged off weekend political developments and focused on upcoming central bank policy decisions and major tech earnings releases. Large-cap stocks advanced broadly, with Samsung Electronics rising 0.91% and SK hynix jumping 4.83%. Meanwhile, Iranian Foreign Minister Abbas Araghchi was headed to Russia to meet President Vladimir Putin, following the collapsed U.S. negotiations. On Friday, the S&P 500 and Nasdaq Composite closed at record levels, with the Nasdaq adding 1.63% to settle at 24,836.60.