Asia markets set to open higher amid hopes of a U.S.-Iran deal; China trade data in focus

Asia-Pacific markets were set to open higher Tuesday, amid hopes that a deal between Washington and Tehran was still possible even as the U.S. blockades Iranian ports in the Strait of Hormuz.

A fragile U.S.-Iran ceasefire, while not officially scrapped, has been deeply frayed, with the U.S. and Iran accusing each other of violating the conditions of the truce.

The U.S. on Monday said it began blocking ships from entering or exiting Iranian ports in the Strait of Hormuz, as it seeks to raise pressure on Iran to reopen the key oil route, following the collapse of peace talks. The blockade took effect at 10 a.m. ET.

Iranian officials responded by warning that the U.S. blockade will only drive global energy prices higher.

"Enjoy the current pump figures. With the so-called 'blockade', Soon you'll be nostalgic for $4–$5 gas," Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, said in an X post Sunday.

Investors in Asia will also be watching out for China trade data later in the day.

The West Texas Intermediate was 2.28% lower at $96.82 per barrel as of 7:40 p.m. ET. Brent crude last traded at $99.36 per barrel.

Japan's Nikkei 225 was poised to gain, with the Chicago contract at 57,730 and its Osaka counterpart last trading at 57,700, compared to the index's previous close of 56,502.77.

Hong Kong Hang Seng index futures last traded at 25,924, compared with the index's last close of 25,660.85.

In Australia, futures last traded at 9,069, while the S&P/ASX 200's closed at 8,926.