President Trump's decision to pause the U.S. naval operation in the Strait of Hormuz provided market relief on Wednesday, with oil prices falling and Asian stocks rising. The president cited "great progress" toward a peace agreement with Iran, easing concerns about supply disruptions through the critical waterway that handles one-fifth of global oil shipments.

China's foreign minister Wang Yi held talks with Iranian officials in Beijing as a major oil buyer with influence in the region. Brent crude dropped 2% to about $108 per barrel while West Texas Intermediate fell 2% to around $100 per barrel, reflecting reduced geopolitical premiums in the market.

Asian markets responded positively to the diplomatic developments, with South Korea's KOSPI index jumping 6% and mainland Chinese stocks rising over 1%. Despite these gains, gasoline prices continued climbing to a national average of $4.48 per gallon, up 51% since the conflict began, with diesel holding steady at $5.66 per gallon.