Asian shares rose on Wednesday, though some benchmarks trimmed earlier gains, as investors closely monitored developments in the war with Iran. U.S. stock futures climbed while oil prices showed mixed movements.

Tokyo’s Nikkei 225 added 1.3% to 54,926.50, and South Korea’s Kospi rose 0.6% to 5,562.40, after surging more than 3% earlier. Australia’s S&P/ASX 200 gained 0.6% to 8,743.50. Taiwan’s benchmark index jumped 4.1%, while Bangkok’s SET rose 1.3%. In contrast, Hong Kong’s Hang Seng slipped 0.2% to 25,921.02, and India’s Sensex fell 1.1%.

Oil prices remained well below Monday’s peaks, which had rattled global markets due to fears that the conflict could block the flow of oil and gas. Brent crude dipped slightly to $87.78 per barrel, while U.S.

crude rose to $83.98. Prices had plunged from nearly $120 per barrel after U.S. President Donald Trump suggested the war could end soon, raising hopes of a return to normal energy flows.

Despite optimism, tensions remain high. The U.S. targeted Iranian minelaying vessels, while Iran threatened to block oil exports. Trump warned that any attempt to close the Strait of Hormuz would face a “twenty times harder” response from the United States.

In the U.S., the S&P 500 fell 0.2% to 6,781.48, the Dow dipped slightly, and the Nasdaq edged up. Oracle shares surged 12% in premarket trading after reporting stronger-than-expected earnings and revenue growth.

Analysts say markets often rebound quickly from conflicts if oil prices remain steady. But prolonged high oil prices could strain household budgets and raise business costs, increasing the risk of “stagflation,” where economic growth slows while inflation stays high.

Currency movements were modest, with the dollar rising to 158.08 Japanese yen, and the euro trading at $1.1638.