HONG KONG — Oil prices fell Monday on optimism over US-Iran talks, with mediators flagging a "roadmap" to a final agreement, while equities were mixed.

 

The negotiations finally got underway Sunday in Switzerland with teams led by US Vice President JD Vance and Iran's Mohammad Bagher Ghalibaf, after being initially postponed in the wake of fighting between Israel and Hizbollah.

 

Traders have been in a buoyant mood after news that the two foes had paused their conflict, which had sent energy costs soaring and stoking inflation.

 

There were initial jitters following reports that Iran had called off the talks, but mediators Pakistan and Qatar said the negotiations took place in "a positive and constructive atmosphere".

 

The mood improved as Qatar and Pakistan announced progress in the talks, which aim to address Tehran's nuclear programme and the Strait of Hormuz, the conduit for about a fifth of the world's oil and gas

 

The two mediators said the United States and Iran agreed to set up a "communication line" to avoid incidents in the crucial waterway, and "the High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks".

 

Iranian Foreign Minister Abbas Araghchi said on X that "mediation has delivered major progress to end Lebanon War".

 

In afternoon Asian trade, Brent was down almost one percent, while West Texas Intermediate was flat.

 

Stock markets were mixed after a broadly positive start.

 

Tokyo, Seoul and Taipei were boosted by tech firms again, while there were also advances in Shanghai, Mumbai and Bangkok.

 

But Hong Kong, Sydney, Singapore, Wellington, Manila and Jakarta fell.

 

London, Paris and Frankfurt opened higher.

 

"Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile," said National Australia Bank's Skye Masters.

 

"The dollar is likely to remain supported, the oilprice could swing either way but at current levels the risk is for a lift higher."

 

Sterling extended after suffering a sell-off following Thursday's by-election win for UK Labour politician Andy Burnham that ramped up expectations he will seek to replace Keir Starme, who resigned Monday.