President Trump's claim of productive negotiations with Iran marks a potential de-escalation in Middle East tensions, according to Pepperstone's Michael Brown. After Trump said Washington and Tehran held conversations, Iran denied them, but the research strategist notes the move signals Trump has reversed his weekend ultimatum and appears to be pursuing diplomacy for the first time since the conflict began.

China's energy outlook shows resilience amid global uncertainty, with Nomura analysts highlighting coal's dominance in the country's energy mix. Beijing could ramp up domestic coal production in coming weeks as a reliable backstop, while renewable energy expansion strengthens China's energy security. The government's limited fuel price hike of 1,160 yuan per ton for gasoline and 1,115 yuan per ton for diesel demonstrates efforts to cushion oil price shocks.

Sinopec faces mixed prospects in its first-quarter results, with Morningstar's Chokwai Lee citing improved upstream earnings and inventory gains as positive factors. However, the oil refiner confronts pressure from rising freight costs, pricing controls on refined products, and potential export restrictions following the Iran war. Morningstar cut its 2026 net profit forecast by 9% and raised the fair value estimate for H-shares to HK$5.70, while warning of downside risk to refining margins should supply disruptions persist.