Oil prices rose while Asian equities fell Tuesday morning amid a deadlock in U.S.-Iran ceasefire negotiations.

However, gains in oil prices are being capped by Saudi Arabia's resumption of oil exports via its East-West pipeline after repairing damage caused by drone strikes, restoring a crucial route around the Strait of Hormuz and dealing a blow to Iran.

"U.S.-Iran ceasefire talks remained deadlocked, prolonging uncertainty over the reopening of the Strait of Hormuz," ANZ Research analysts said in a report. However, oil price gains eased after Saudi Arabia resumed exports through its East-West pipeline, with flows of 3.5 million barrels per day, the analysts added.

Front-month West Texas Intermediate crude oil futures were up 0.8% at $93.37 a barrel and front-month Brent crude oil futures were 0.9% higher at $106.20 a barrel, according to ICE data.

Equity markets across Asia-Pacific declined as the deadlock in U.S.-Iran ceasefire talks diminished appetite for risk assets. Japan's Nikkei Stock Average was down 0.9%, South Korea's Kospi dropped 0.7%, and Australia's S&P/ASX 200 index edged 0.1% lower.

"The main theme was risk-off," Commerzbank Research analysts said. "The dominant driver of price action was the collapse of diplomatic efforts to reopen the Strait of Hormuz," the analysts added.

Meanwhile, Asian government bond yields were mixed after U.S. Treasury yields hit multi-year highs on Monday. The U.S. 10-year yield rose to 5.241%, the highest level since June 2007. The two-year U.S. Treasury yield reached 4.922%, its highest yield since May 2024. The 30-year Treasury yield touched 5.561% the highest yield since June 2002.

The yield on Japan's 10-year government bonds edged 1 basis point higher to 3.095%, while the yield on Australia's 10-year sovereign debt was steady at 5.419% and the yield on New Zealand's 10-year government bonds was down 1 basis point at 5.123%.