Asian stock markets reflect broader strength on Wednesday, as oil prices have fallen further on renewed hopes of the Strait of Hormuz, a vital passage for almost 20% of global energy supply, reopening.

At press time, Nikkei 225 is up 0.7% to near 66,300, Shanghai rises 0.7% slightly above 3,900, Hang Seng also posts similar gains, and KOSPI surges over 2% to near 6,880.

In the Asian session, the WTI Oil price is down a little over 1% to near $80, extending its losing streak for the third trading day.

Oil prices have been pressured after reports that Iran and Oman have agreed to restart discussions surrounding safe navigation through the passage. On Tuesday, Iranian Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz, Bloomberg reported.

Given that Asian economies rely heavily on oil imports to meet their energy needs, lower oil prices bode well for their economic outlook.

Meanwhile, financial markets keenly await remarks from Federal Reserve (Fed) Chair Kevin Warsh at the Jackson Hole Symposium, which will begin early Thursday.