Asian stocks were poised to follow Wall Street higher, driven by optimism surrounding a potential interim deal between Washington and Tehran. This development has eased concerns about energy supplies, contributing to the upward momentum in global markets.

US stocks reached fresh record highs as the prospect of de-escalation in the Middle East boosted investor sentiment. The easing of tensions is particularly significant for energy markets, which have been sensitive to disruptions in the Strait of Hormuz. Investors are closely watching for further developments on the diplomatic front, anticipating that a successful interim agreement could provide a period of stability.

Markets are anticipating a positive opening for Asian equities, reflecting the broader positive sentiment established by the gains in US markets. The focus remains on the potential for a diplomatic resolution to ease geopolitical risks and support economic activity. Analysts suggest that a sustained reduction in energy supply concerns could lead to further gains across regional markets.