Japan PM says oil crisis has 'enormous impact' in Asia-Pacific

Dutch authorities will attempt to repatriate two sick people from a cruise ship battling a suspected outbreak of hantavirus that has already claimed three lives, the vessel's operator said Monday.

In a statement on the crisis, Oceanwide Expeditions confirmed it was dealing with "a serious medical situation" on board the MV Hondius, travelling from Ushuaia in Argentina to Cape Verde.

The operator confirmed the three deaths, two on board and one after disembarking the ship. One passenger is in intensive care in Johannesburg and two others "require urgent medical care," the statement said.

"Dutch authorities have agreed to lead a joint effort to organise the repatriation of the two symptomatic individuals on board MV Hondius from Cape Verde to the Netherlands," the operator said.

Such a repatriation would depend on several factors, including authorisation from local officials in Cape Verde, said Oceanwide Expeditions.

Contacted by AFP, the Dutch foreign ministry did not immediately respond to confirm the repatriation efforts.

The ship is currently located off the coast of Cape Verde. While local doctors have visited to assess the medical condition of the two sick passengers, no permission has been given to evacuate them to shore.

"Disembarkation and medical screening of all passengers require coordination with local health authorities and we are in close consultation with them," said the operator.

Hantavirus, an illness usually transmitted to humans from rodents, has been confirmed in the passenger currently in intensive care in Johannesburg, the operator said.

However, it has not yet been established whether the virus caused the three deaths, said Oceanwide Expeditions.

There has also been no confirmation of hantavirus in the two symptomatic passengers still requiring attention on the ship.

"The exact cause and any possible connection are under investigation," said the ship's operator.

On Sunday, the World Health Organization said one case of hantavirus had been confirmed and that there were "five additional suspected cases."

"While rare, hantavirus may spread between people, and can lead to severe respiratory illness and requires careful patient monitoring, support and response," said the WHO.

burs-ric/yad

The latest developments in the Middle East war:

- Iran warns over Hormuz - 

Iran's military said that US forces would be attacked if they entered the Strait of Hormuz, after US President Donald Trump announced Washington would begin escorting ships through the blocked waterway.

"We warn that any foreign armed force -- especially the aggressive US military -- if they intend to approach or enter the Strait of Hormuz, will be targeted and attacked," said Major General Ali Abdollahi of the Iranian military's central command, in a statement carried by state broadcaster IRIB.

"We have repeatedly stated that the security of the Strait of Hormuz is under the control of the armed forces of the Islamic Republic of Iran, and under all circumstances, any safe passage must be coordinated with these forces," he added.

- Tanker struck near the UAE -

Unidentified projectiles struck a tanker off the coast of the United Arab Emirates, the United Kingdom Maritime Trade Operations (UKMTO) said Monday, adding that all crew members were safe.

The incident occurred 78 nautical miles north of the UAE city of Fujairah, the agency said. 

- US to escort ships through Hormuz -

President Donald Trump said Sunday that "very positive discussions" were under way with Iran on resolving the war and that US forces will soon start escorting ships out of the blocked Strait of Hormuz in a mission dubbed "Project Freedom."

In a post on Truth Social, Trump called it a "humanitarian gesture," saying many of the marooned ships "were running low on food," but offered few details on how the mission would work.

US Central Command said on X that its forces would begin supporting Project Freedom with guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.

- US 'interference' would violate ceasefire -

In response to Trump's announcement, a senior Iranian official warned on Monday that Tehran would consider any US attempt to interfere in the Strait of Hormuz a breach of the ongoing ceasefire.

"Any American interference in the new maritime regime of the Strait of Hormuz will be considered a violation of the ceasefire," Ebrahim Azizi, head of the national security commission in Iran's parliament, posted on X.

- Iran weighs US response to plan -

Iran's Revolutionary Guards said Sunday the United States faced a choice between an "impossible" military operation or a deal with Tehran, after Trump disparaged Iran's latest peace proposal.

Iran's foreign ministry said Tehran had submitted a 14-point plan "focused on ending the war" and that Washington had already responded to it in a message to Pakistani mediators, which Iran was reviewing.

- Germany's Merz not 'giving up' on working with US -

German Chancellor Friedrich Merz said Sunday he would not give up on working with Trump, despite a spat between the leaders over the Iran war and Trump's announcement that the number of US troops stationed in the European country would be cut by "a lot further than 5,000."

"I am not giving up on working on the transatlantic relationship," Merz told public broadcaster ARD. "Nor am I giving up on working with Donald Trump."

- US says blockade 'suffocating' Iran -

Treasury Secretary Scott Bessent said Sunday that the US was "suffocating" Iran's leadership through an "economic blockade" launched alongside Washington's military offensive known as Operation Epic Fury.

"This began with the order last March from President Trump on max pressure, and three weeks ago the president gave the order to Treasury myself to begin Economic Fury," Bessent told Fox News.

burs/yad/cw

Iran's military warned on Monday that US forces would be attacked if they entered the Strait of Hormuz, after President Donald Trump said the United States would begin escorting ships through the waterway.

Negotiations between the two countries have been deadlocked since a ceasefire in the US-Israeli war against Iran took effect on April 8, with Tehran's stranglehold on the strait a main point of contention.

Trump said on Sunday that the new maritime operation, which he dubbed "Project Freedom", was a "humanitarian" gesture for crews aboard the many ships swept up in the blockade who may be running low on food and other supplies.

"We will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation," Trump posted on Truth Social, saying operations would begin on Monday.

In response, the Iranian military's central command said any safe passage through Hormuz must be coordinated with its forces "under all circumstances".

"We warn that any foreign armed force -- especially the aggressive US military -- if they intend to approach or enter the Strait of Hormuz, will be targeted and attacked," said Major General Ali Abdollahi in a statement carried by state broadcaster IRIB.

By blocking the Strait of Hormuz, Iran has choked off major flows of oil, gas and fertiliser to the world economy, while the United States has imposed a counter-blockade on Iranian ports.

Trump in his post said he was "fully aware that my Representatives are having very positive discussions with the Country of Iran, and that these discussions could lead to something very positive for all."

But he made no direct mention of a 14-point plan that Tehran said it put forward last week to end the war.

US Central Command said it would use guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members in the Hormuz effort.

As of April 29, more than 900 commercial vessels were located in the Gulf, according to maritime intelligence firm AXSMarine.

- 'Impossible operation' -

US news website Axios, citing two sources briefed on the Iranian proposal, reported that Tehran set "a one-month deadline for negotiations on a deal to reopen the strait", lift the US naval blockade and end the war.

On Sunday, the Revolutionary Guards sought to put the onus back on Trump, saying he must choose between "an impossible operation or a bad deal with the Islamic Republic of Iran". 

Washington's European allies are concerned that the longer the strait remains closed, the more their economies will suffer, and German Foreign Minister Johann Wadephul demanded that it be reopened.

In a call with his Iranian counterpart Abbas Araghchi, Wadephul stressed that Germany supported a negotiated solution but that "Iran must completely and verifiably renounce nuclear weapons and immediately open the Strait of Hormuz".

Meanwhile, French President Emmanuel Macron, who has tried to coordinate a post-war mission to the strait alongside Britain and an international coalition, called for "a coordinated reopening by the United States and Iran".

"That is the only solution for reopening", he said.

Oil prices are currently about 50 percent above pre-conflict levels, largely due to the supply snarls in the strait.

- 'Suffocating the regime' -

The US president, who spent the weekend at his Mar-a-Lago resort in Florida, declined on Sunday to specify what could trigger new US military action.

But in his post he said that "if in any way, this Humanitarian (ship-guiding) process is interfered with, that interference will, unfortunately, have to be dealt with forcefully".

Treasury Secretary Scott Bessent said the US naval blockade was only part of a broader economic embargo.

"We are suffocating the regime, and they are not able to pay their soldiers," he told Fox News. "This is a real economic blockade, and it is in all parts of government."

burs-axn/dcp

Vote counting in key Indian state elections was underway Monday under tight security, with the focus on West Bengal, where Prime Minister Narendra Modi's party appeared set for victory.

And in the southern state of Tamil Nadu, veteran politician MK Stalin was trailing, challenged by a political debutante -- film star C. Joseph Vijay.

Elections in five states and territories took place in April and May, with Modi's Bharatiya Janata Party (BJP), the ruling party in the national parliament, seeking to make inroads into opposition-held states.

In West Bengal, the Hindu-nationalist BJP waged an aggressive bid to dislodge Chief Minister Mamata Banerjee, the firebrand leader of the All India Trinamool Congress (TMC), in power in the state of 100 million people since 2011.

Trends released by the Election Commission of India on Monday showed BJP leading in 176 out of 294 seats in West Bengal.

"The entire country has its eyes on this state's election results," political analyst Biswanath Chakraborty told AFP, in the capital Kolkata. "The contest can tilt the balance of power."

The campaign this time was marked by protests over the removal of millions of names from voter rolls, billed as removing ineligible voters, but which critics said was skewed against marginalised and minority communities.

Banerjee, speaking ahead of the count, insisted her party would win. 

"The BJP is not coming, take my word for it," she said. "Be patient till the last."

But West Bengal's BJP chief Samik Bhattacharya told AFP he was confident of a win.

"It was an election of rejection," he said. "People of the state want change. The ruling Trinamool Congress will be defeated."

Past elections have resulted in violence in the state, where BJP has never been in power.

- 'Political earthquake' - 

In Tamil Nadu, a key industrial hub with more than 80 million people, the ruling Dravida Munnetra Kazhagam (DMK) under Chief Minister MK Stalin was trailing, according to early Election Commission trends.

Stalin is being challenged by C. Joseph Vijay, 51, one of India's most bankable actors, especially in Tamil regions.

The political debutante launched his Tamilaga Vettri Kazhagam (TVK) party in 2024. 

Election Commission trends showed Vijay's TVK leading, a surprise result in the state where exit polls suggested Stalin's DMK would return to power.

Votes are also being counted in Assam, a northeastern state of more than 31 million which the BJP is widely expected to maintain control of, and the small coastal territory of Puducherry, where the BJP is part of a ruling coalition.

In Kerala, the tightly contested race in the southern state of approximately 36 million, trends suggest the Congress party-led alliance will oust the Communist party.

Wins in the state elections would put Modi on a stronger footing while battling a series of economic and foreign policy challenges, including high unemployment rate and a pending US trade deal.

Omar Abdullah, chief minister of Jammu and Kashmir, said a win for BJP in West Bengal and the TVK in Tamil Nadu would be nothing short of a "political earthquake".

"The aftershocks of these results will be felt far and wide for a long time," he said on social media, "probably all the way" to the 2029 general elections.

str-ash/pjm/abh/mtp

Wales -- the cradle of Britain's revered National Health Service and a former industrial powerhouse -- has been a Labour Party stronghold for well over a century.

But that is set to end in crunch polls Thursday as impatient Britons abandon their old political loyalties for anti-establishment parties amid persistent cost of living pressures.

A Labour defeat in the country of three million people will be a major indictment of lacklustre UK leader Keir Starmer's two-year-old premiership and likely amplify calls for his resignation.

"I feel very sad that I'm not voting Labour this time," said 59-year-old Ross Mumford, explaining he had always supported the centre-left party, just like his father and grandfather. 

"It's been a part of the family but it's coming to an end this year," the delivery driver told AFP outside the Welsh parliament in the capital Cardiff.

Wales, with its strong working-class roots and deep sense of community, has been woven into the fabric of Labour since the party was founded in 1900.

The party's first leader, Keir Hardie, represented a constituency in the country's industrial South Valleys, while Welshman Aneurin Bevan spearheaded the founding of the NHS in 1948.

Labour has led Wales' devolved government -- whose powers include running health, education and transport -- since the inception of the parliament, called the Senedd, in 1999.

Polls widely predict that 27-year-run will finish when voters head to the polls on May 7, although a new voting system means who will triumph instead is uncertain.

- 'Upset' -

Surveys show Labour trailing the hard-right Reform UK party and progressive Welsh nationalists Plaid Cymru, mirroring a UK-wide squeeze of Britain's ruling party from both ends of the political spectrum. 

Mumford thinks Starmer has "lied through his teeth" in a scandal over sacked US envoy Peter Mandelson. He will vote Reform, believing firebrand leader Nigel Farage is a straight-talker. 

"Let's give them a try. What have we got to lose?" he said, a common refrain among voters unhappy with how Labour has governed the UK since July 2024 following 14 years of Conservative rule. 

Hope Porter, 35, another previous Labour voter told AFP she will likely cast her ballot for the left-wing Greens. She is angry at Starmer's stance on the Gaza war.

"They're Tories in red at this point. I don't think they are actually for working class people anymore," the artist said, enjoying an evening stroll outside the Senedd.

In Cardiff city centre, sitting near a statue of ex-Labour MP Bevan, 83-year-old Sue Jenkins said she isn't ready to give up on Labour yet.

The retiree thinks Starmer "could do better" but feels he has done well to stand up to President Donald Trump over the US and Israel conflict.

"If Labour don't get in, I'll be very upset," Jenkins told AFP.

Labour candidate Huw Thomas insists one party will find it difficult to win a majority, meaning "it's all to play for".

"The narrative that this is the end of the Labour Party in Wales, I don't think that's a given," he told AFP.

Twenty-three miles (37 kilometres) north in Merthyr Tydfil -- where Hardie was an MP -- half a dozen Reform volunteers hand out fliers from under a gazebo.

Several passing drivers sound their horns in support, receiving thumbs up from the canvassers, although one woman shouts "racists" at the group.

Unemployment and deprivation are the main issues in the post-industrial town once famous for its coal mining and ironworks, says candidate David Hughes.

"People are losing hope," the 59-year-old told AFP.

- 'Enormous problems' -

Volunteer Robert Clarke, 69, likes Reform's pledge to scrap net zero energy targets -- he's "not a great fan" of wind turbines on Wales' rolling hills -- and cut irregular immigration.

"Unless we change the direction this country is taking, I feel my grandchildren will not have a country," he told AFP.

In the nearby picturesque town of Pontypridd, Plaid Cymru campaigners buoyantly knock on doors, sensing victory in another traditional Labour heartland.

"We're definitely picking up disaffected voters," candidate Heledd Fychan told AFP, saying people felt "betrayed" by Labour's moves to remove heating subsidies from the elderly.

Back in Cardiff, 65-year-old retired teacher Ceri James says he will vote for Plaid because of their "positive" messaging.

Speculation is rife in Westminster that losing Wales could be the moment restless Labour MPs decide to try to oust Starmer as leader. 

Defeat "will pose enormous problems for the party," politics expert Laura McAllister of Cardiff University told AFP.

pdh/jkb/giv

Following high-profile testimony from billionaire Elon Musk last week, one of OpenAI's co-founders will testify Monday in the California lawsuit brought by the world's richest man against the creators of ChatGPT.

Musk is seeking to force his rivals in artificial intelligence (AI) development to revert to a non-profit foundation.

Greg Brockman, co-founder and president of OpenAI, will face questioning from Musk's lawyers on Monday in the Oakland courthouse.

OpenAI CEO and co-founder Sam Altman, who in 10 years has gone from being Musk's protege to a bitter rival, is not expected to take the stand until the week of May 11.

The outcome of the case could shape the future of OpenAI, the fast-rising generative AI giant now valued at over $850 billion and preparing for an IPO.

Microsoft CEO Satya Nadella, whose company is accused of illegally funding OpenAI's commercial transformation, may also testify this week. 

Over three days of testimony last week, Musk portrayed himself as a selfless early supporter of OpenAI, saying he contributed $38 million between 2016 and 2020 before being sidelined.

The head of SpaceX and Tesla argued that he wanted to counterbalance Google's dominance and ensure that transformative AI technology -- which he has warned poses risks to humanity -- remain free from profit-driven pressures.

-- Global competition --

OpenAI's current structure, while highly lucrative, still operates under a nonprofit parent entity.

Last week, Altman and Brockman sat in the front row for almost the entire hearing, and made no statements inside or outside the courtroom. The trial has drawn intense media attention, with dozens of journalists covering the hearings daily.

OpenAI's legal team has pushed back, questioning Musk's own financial motives. 

The billionaire recently folded his AI venture, xAI -- maker of the chatbot Grok -- into SpaceX, which is reportedly valued at about $1.25 trillion and may also pursue a public offering.

The stakes are high. If Judge Yvonne Gonzalez Rogers ultimately rules in favor of Musk, OpenAI's IPO could be jeopardized.

That could reshape the global AI landscape, where major players like Google and Chinese tech firms are competing aggressively.

OpenAI is also facing growing competition from Anthropic and its Claude model. 

While the sector is already generating tens of billions in annual revenue, those figures still fall short of the massive investments required for talent, advanced processors and the construction of energy-intensive data centers powering the AI revolution.

bl/mjf/sla/lga

Vote counting in key Indian state elections was underway Monday under tight security, with the focus on West Bengal, where Prime Minister Narendra Modi's party is hoping for crucial gains.

Elections in five states and territories took place in April and May, and Modi's Bharatiya Janata Party (BJP), the ruling party in the national parliament, is hoping to make inroads into opposition-held states.

In West Bengal, the Hindu-nationalist BJP waged an aggressive bid to dislodge Chief Minister Mamata Banerjee, the firebrand leader of the All India Trinamool Congress (TMC), in power in the state of 100 million people since 2011.

Exit polls last week predicted the BJP has a slight edge over TMC, although exit polls have a patchy record in India.

"The entire country has its eyes on this state's election results," political analyst Biswanath Chakraborty told AFP, in the main city Kolkata. "The contest can tilt the balance of power."

The campaign this time was marked by protests over the removal of millions of names from voter rolls, billed as removing ineligible voters, but which critics said was skewed against marginalised and minority communities.

Banerjee, speaking ahead of the count, insisted her TMC would win. 

"The BJP is not coming, take my word for it," she said. "Be patient till the last."

But West Bengal's BJP chief Samik Bhattacharya told AFP he was confident of a win.

"It was an election of rejection," he said. "People of the state want change. The ruling Trinamool Congress will be defeated."

Past elections have resulted in violence in the state.

In the southern state of Tamil Nadu, a key industrial hub with more than 80 million people, the ruling Dravida Munnetra Kazhagam (DMK) under Chief Minister MK Stalin is widely expected to be re-elected.

Votes are also being counted in Assam, an eastern state of more than 31 million which the BJP is widely expected to maintain control of, and the small coastal territory of Puducherry, where the BJP is part of a ruling coalition.

In Kerala, the tightly contested race in the southern state of approximately 36 million, exit polls suggest the Congress party-led alliance is tipped to oust the Communist party.

Wins in the state elections would put Modi on a stronger footing while battling a series of economic and foreign policy challenges, including high unemployment rate and a pending US trade deal.

str-ash/pjm/mtp

A global oil supply squeeze is inflicting an "enormous impact" on the Asia-Pacific region, Japan Prime Minister Sanae Takaichi said Monday.

Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, she said the two countries would respond urgently to secure stable energy supplies.

Roughly one-fifth of the world's oil normally flows through the Strait of Hormuz, where shipping has been throttled by Iran since it was attacked by the United States and Israel.

Eighty percent of that oil is destined for Asia, according to the International Energy Agency.

"The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific," the Japanese leader told journalists.

"We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency."

The two countries aim to strengthen autonomy and  resilience to secure stable supplies of energy, Takaichi said.

Australia is the biggest supplier of liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia's diesel.

- 'Global shocks' -

The two countries issued a string of statements vowing to work together on energy, the economy, defence, and critical minerals.

"These agreements are to the benefit of both of our people," Albanese said.

"For Australians, it will mean we are less vulnerable to global shocks like we are seeing right now because of conflict in the Middle East."

Japan's government has said it is also keen to ensure a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries and weapons systems.

Australia has touted its abundant critical minerals as a way to loosen China's grip over global supplies of rare earths.

Australia and Japan have strengthened their defence ties, too, striking a Aus$10 billion (US$6 billion) deal last year for Japan to to provide Mogami-class stealth warships to the Australian navy.

In a foreign policy address delivered in Vietnam at the weekend, Takaichi promised to do more to ensure a "free and open Indo-Pacific" -- a strategy that has rankled China.

Japan aimed to build its resilience, she said, notably strengthening its supply chains for energy and critical minerals, and enhancing security cooperation.

First articulated a decade ago by Takaichi's mentor Shinzo Abe, the idea of a "free and open" Indo-Pacific has since been embraced by multiple US partners and allies seeking to curb China's influence in the region.

bur-djw/abs

A North Korean women's football club will become the first sports team from the country to play in South Korea since 2018 when they visit this month, Seoul's unification ministry said Monday.

The neighbours remain technically at war after their 1950–53 conflict ended in an armistice rather than a peace treaty, and sporting and cultural exchanges between them are very rare.

Naegohyang Women's FC will play the South's Suwon FC Women on May 20 in the semi-finals of the Asian Champions League.

The visiting delegation will include 27 players and 12 club staff, the ministry said. South Korea's football association told AFP that the team would arrive on May 17.

They will fly into Incheon airport on an Air China flight from Beijing, a unification ministry official told reporters.

The winner of the match at Suwon Sports Complex, south of the capital Seoul, will play the final of Asia's top women's club competition against either Australia's Melbourne City or Japan's Tokyo Verdy Beleza on May 23.

"The losing team in the semi-final will return home on Thursday, May 21, with no third-place playoff scheduled," the ministry said in a press release.

The match will be the first time a North Korean sports team has played in the South since shooting, youth football and table tennis delegations travelled there in 2018.

The last time Pyongyang sent a women's football team to the South was in 2014, when the North Korean national team took part at the Asian Games in Incheon.

Founded in 2012 and based in the North Korean capital, much of Naegohyang's squad is "made up of national team-level players", the ministry said.

North Korea's national team is one of the dominant forces in Asian women's football, winning multiple international titles in recent years, especially at youth level.

The most recent one came in November last year, when they defeated the Netherlands 3-0 in the final of the U-17 Women's World Cup.

- Peace overtures -

The announcement comes as Seoul seeks a rapprochement with Pyongyang after years of bad blood.

South Korea's dovish President Lee Jae Myung has called for talks with the North without any preconditions, saying the countries are destined "to make the flowers of peace bloom".

The North has not responded to the Lee administration's overtures and has repeatedly labelled the South its "most hostile" adversary.

For Seoul, the match is an opportunity to establish "at least a basic communication channel between North and South Korea", Lim Eul-chul, a North Korea expert at the South's Kyungnam University, said.

"It could become a chance to test peaceful coexistence," he told AFP.

North Korean leader Kim Jong Un has vowed to boost his nuclear forces, and Pyongyang conducted four missile tests in April, the most in a single month for over two years.

Pyongyang has also drawn closer to Russia, sending troops and artillery shells to support its invasion of Ukraine.

Observers say Pyongyang is receiving military technology assistance from Moscow in return.

kjk-mjw/pst

Tech firms led a rally across most Asian markets Monday following another healthy day on Wall Street fuelled by more strong earnings, while investors were also cheered by news that Iran had submitted fresh proposals to end its war with the United States.

While the Middle East crisis continued to rumble along, with the Strait of Hormuz still effectively choked off, dealers turned their focus on the corporate world as they jumped back into the AI trade that has propelled several markets to record highs.

Forecast-beating reports from Apple, Google, Microsoft and Samsung have reawakened interest in the artificial intelligence sector after the market tumult caused by the US-Israel strikes on Iran at the end of February.

Companies in the S&P 500 are on track to report earnings growth of 27.1 percent, the highest rate in more than four years, according to Factset.

Investors have been playing a waiting game since a ceasefire was agreed at the start of April, with just one round of talks taking place that came to nothing.

In the meantime, the United States maintains a blockade of Iranian ports and Tehran is keeping the strait -- through which a fifth of global oil and gas usually passes -- closed.

Optimism was given a boost Friday after an Iranian report that Tehran had delivered the text of a new proposal to mediator Pakistan the night before.

The offer was said by the Tasnim News Agency as calling for a complete end to the conflict within 30 days along with guarantees against renewed strikes.

It also reiterated previous demands that include the withdrawal of US forces from near Iran, the blockade to be lifted and sanctions removed.

Iran's foreign ministry said Tehran had submitted a 14-point plan "focused on ending the war" and that Washington had already responded to it in a message to Pakistani mediators, which Iran was reviewing.

Oil prices fluctuated Monday after dropping on Friday.

Donald Trump said Sunday that "very positive discussions" were underway and that US forces will soon start escorting ships out of the Strait of Hormuz in a a "humanitarian gesture" dubbed "Project Freedom".

In a post on Truth Social, the US president said many of the marooned ships "were running low on food", but offered few details on how the mission would work.

US Central Command said on X that its forces would begin supporting Project Freedom with guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.

However, a senior Iranian official warned Monday that Tehran would consider any US attempt to interfere in the Strait of Hormuz a breach of the ongoing ceasefire.

"Whether this will lead to sustained weakness in oil remains to be seen," wrote Fawad Razaqzada at Forex.com.

"In my view, as long as the Strait of Hormuz situation remains unresolved, these types of headlines are likely to provide only temporary pressure on prices rather than drive a prolonged move lower."

Equities started the month on a broadly positive note, following all-time highs for the S&P 500 and Nasdaq in New York on Friday.

Seoul and Taipei jumped more than four percent to hit fresh records.

South Korean chip giant SK hynix was the standout, piling on more than 10 percent, while rival Samsung was up around four percent. Taiwanese counterpart TSMC was almost seven percent up.

Hong Kong also saw strong gains thanks to a surge in Chinese tech firms including Alibaba, while Singapore, Manila and Jakarta were also up.

Tokyo and Shanghai were closed for holidays.

However, Chris Weston at Pepperstone said: "After a strong April for risk assets, we need to remain open-minded about what May will bring.

"This week should provide early signals, but with risk assets pricing in a lot of good news, and rightly so, the time for that to be validated may now be here."

On currency markets, the yen was holding its own against the dollar after a rally on Thursday was said to have come on the back of Japanese intervention.

Officials were said to have spent at least $32 billion in the foreign exchange market, according to multiple reports, in its first such move to prop up the yen since 2024.

- Key figures at around 0300 GMT -

Hong Kong - Hang Seng Index: UP 1.9 percent at 26,268.77

Tokyo - Nikkei 225: Closed for a holiday

Shanghai - Composite: Closed for a holiday

West Texas Intermediate: DOWN 0.1 percent at $101.82 a barrel

Brent North Sea Crude: UP 0.1 percent to $108.29 a barrel

Dollar/yen: UP at 157.19 yen from 157.06 yen on Friday

Euro/dollar: UP at $1.1726 from $1.1720

Pound/dollar: UP at $1.3586 from $1.3578

Euro/pound: DOWN at 86.31 pence from 86.32 pence

New York - Dow: DOWN 0.3 percent at 49,499.27 (close)

London - FTSE 100: DOWN 0.1 percent at 10,363.93 (close)

dan/abs