Global oil prices extended losses on Wednesday as investors reacted to renewed hopes for an easing of tensions around the Strait of Hormuz, while Samsung Electronics became only the second Asian company to surpass a market valuation of $1 trillion amid continued demand for artificial intelligence chips.
Markets responded positively after US President Donald Trump signalled a possible diplomatic breakthrough with Iran. Trump said efforts to assist stranded vessels through the Strait of Hormuz would be paused temporarily to allow negotiations to continue.
“Project Freedom will be paused for a short period of time to see whether or not the agreement can be finalised and signed,” he wrote on social media.
He said the decision followed “great progress” towards a “complete and final agreement” with Iranian representatives and added that mediator Pakistan had requested the pause. Despite the move, the US blockade on Iranian ports remains in place.
The comments came shortly after US Secretary of State Marco Rubio said the offensive phase of the US campaign, known as “Operation Epic Fury”, had ended.
“The operation is over — Epic Fury — as the president notified Congress. We’re done with that stage of it,” Rubio told reporters at the White House.
US Defence Secretary Pete Hegseth also said Washington was “not looking for a fight”, while warning that any attacks on American assets would face an “overwhelming and devastating” response.
Oil markets continued their sharp decline after falling around four per cent on Tuesday. West Texas Intermediate crude briefly dropped below $100 a barrel before trading down 1.6 per cent at $100.62. Brent crude fell 1.7 per cent to $108.06 a barrel.
Lower oil prices supported investor sentiment across Asian equity markets. Hong Kong, Shanghai, Sydney, Wellington, Taipei, Manila and Jakarta all recorded gains, following another record session for the S&P 500 and Nasdaq in the United States.
Fiona Cincotta, senior market analyst at City Index, said investors were reassured by signs of continued diplomacy despite ongoing shipping disruptions in the Gulf region.
“Investors are also finding some reassurance in the fact that the diplomatic push to resolve the conflict continues,” she said.
However, she warned that sentiment remained fragile if the Strait of Hormuz stayed closed for an extended period.
The strongest gains were seen in South Korea, where the Kospi index surged more than five per cent to cross the 7,000-point mark for the first time.
Samsung Electronics led the rally, with shares jumping nearly 12 per cent during morning trading. The rise pushed the company’s market capitalisation above $1 trillion for the first time.
The company has emerged as a major supplier of advanced AI chips alongside domestic rival SK hynix, whose shares also climbed around 10 per cent.
Samsung’s share price has risen roughly 300 per cent over the past year as the global artificial intelligence boom accelerates demand for high-performance semiconductors.
According to Bloomberg News, Samsung is now only the second Asian company after Taiwan Semiconductor Manufacturing Company to reach a market value of $1 trillion.
Last week, the company reported a record first-quarter operating profit of 57.2 trillion won, or about $39.3 billion, marking a 750 per cent increase from a year earlier.
Samsung said the performance was driven by “AI technology innovations and proactive market response” and forecast continued strong memory chip demand as global investment in AI infrastructure expands.
