Asian equities climbed broadly as investors bet on a U.S.-Iran nuclear agreement that would reopen the Strait of Hormuz, the critical oil-shipping chokepoint in the Persian Gulf. Easing supply disruption concerns weighed on crude prices, providing additional tailwinds for regional markets.

Regional mediators are working to extend the cease-fire, which expires next week, and arrange a second round of negotiations, The Wall Street Journal reported, citing officials familiar with the matter. However, progress remains sluggish after marathon peace talks in Islamabad last weekend concluded without a breakthrough.

The U.S. and Iran have agreed in principle to meet again but have not settled on a date or venue. The uncertainty around diplomatic outcomes continues to keep markets on edge, even as the prospect of restored Iranian oil exports drives optimism across Asian trading desks.