Oil prices fell sharply Wednesday as Asian equity markets climbed, buoyed by cautious optimism surrounding potential progress in resolving the Middle East conflict. President Trump indicated Tuesday that Iran expressed a willingness to negotiate, with the U.S. reportedly sending Tehran a detailed 15-point plan aimed at ending the war. This plan largely mirrors previous demands from the Trump administration, focusing on Iran's nuclear program and regional activities. Asian equities rose amid improving risk sentiment, suggesting investors are cautiously optimistic about reduced geopolitical tension.

The market reaction underscores the significant sensitivity of energy and equity markets to developments in the region.