Oil prices rose Tuesday while equities were mixed as investors assessed Donald Trump's latest deadline for Iran to reopen the strategic Strait of Hormuz or be "decimated".
As the Middle East war entered its sixth week, the U.S. president warned Tehran that its civilian infrastructure would be destroyed if it did not let ships through the waterway, through which a fifth of global crude and gas passes.
The remarks came as he and the Islamic republic said a proposal touted by international mediators for a 45-day ceasefire was not yet ready.
Trump told a news conference that "the entire country" of Iran "could be taken out in one night and that night might be tomorrow night", if his ultimatum to reopen the Strait by 0000 GMT Wednesday was not met.
The threat came after a profanity-laced social media post on Easter Sunday in which he vowed Iran would be "living in Hell" if it didn't reopen the Strait.
Tehran said that if such an attack went ahead, it would retaliate by striking energy infrastructure in the Gulf, which could deal a further blow to already thin oil supplies and hammer the global economy.
Both main oil contracts rose Tuesday, with West Texas Intermediate topping $115 — its highest in a month — and Brent sitting around $111.
Equity markets fluctuated, with Tokyo, Singapore, Manila and Jakarta down while Shanghai, Sydney, Seoul, Wellington and Taipei rose. Hong Kong was closed for a holiday.
That followed a positive start to the week on Wall Street.
"Financial markets are oscillating in a narrow, uneasy range as traders sized up the countdown to Donald Trump's Iran deadline," wrote Stephen Innes at SPI Asset Management.
"Tentative ceasefire optics (were) offering brief relief but never fully offsetting the lingering risk of escalation," he added.
"For now, the rhetoric has tightened, the threats sharpened, and yet the market is not capitulating, conditioned by repetition to expect de-escalation just before the edge.
"Traders are no longer reacting to what is said, but to when it is usually walked back."
The hit to fuel supplies from the Middle East has forced governments around the world to unveil economic support measures amid fears of another spike in inflation.
On Tuesday, the Philippines said inflation jumped to a forecast-topping 4.1 percent in March, its highest level in nearly two years.
U.S. figures last week showed growth in the country's services activity cooled last month as companies monitored the higher energy prices and braced for supply chain disruptions.
In company news, Samsung rallied around one percent after estimating first-quarter profit soared 755 percent to an all-time high of $37.9 billion thanks to strong sales of chips crucial for artificial intelligence.
It also said sales were expected to surge 68 percent on-year to hit $88 billion in January-March.
