Oil prices edged higher Wednesday while Europe's main stock markets eased on uncertainty surrounding the prospect of resumed Mideast peace talks following an extension to the US-Iran ceasefire.
Asian equities had a mixed trading day as investors wait for clarity but broadly expect that both US President Donald Trump and the authorities in Iran want to end a war that has sent oil and gas prices soaring.
"The ceasefire extension hasn't done much to calm nerves given that worries remain about the impact of the energy squeeze on the global economy," said Susannah Streeter, chief investment strategist at Wealth Club, AFP reported.
"Shipments from the Middle East are in limbo and a resolution to the conflict remains elusive, and the price of Brent crude, the benchmark, reflects this."
Brent North Sea was once more closing in on $100 a barrel while main US contract, West Texas Intermediate, traded back above $90.
Iranian gunboats attacked at least one container ship in the Strait of Hormuz on Wednesday, maritime agencies said, despite US President Donald Trump announcing he was extending a ceasefire to allow more time for peace talks.
Trump said the US blockade of Iran's ports would continue while Pakistani mediators try to revive dialogue.
Tehran has all but shut the strait in the seven weeks since the United States and Israel launched attacks on Iran that plunged the Middle East into war, with higher energy prices threatening economic growth worldwide.
"The US and Iran may be trying to shore up leverage and playing a game of who blinks first," said Christopher Wong, a strategist at Oversea-Chinese Banking Corp.
"Whatever the outcome, the suspense in the interim may see risk appetite being curtailed," he said.
Away from the war, investors were keeping tabs on the confirmation hearing by senators of Kevin Warsh, Trump's pick to replace Federal Reserve boss Jerome Powell, whose term ends in May.
Warsh told lawmakers he would not be controlled by the president as he fielded questions on his assets and central bank independence during his first hearing.
Trump has assailed Powell for not cutting interest rates more aggressively, and told CNBC on Tuesday that he would be disappointed if the new chair did not swiftly lower borrowing costs despite rising inflation.
In Britain, official data showed that annual inflation jumped to 3.3 percent in March as the Middle East war sent oil and gas prices surging.
