- US stocks rally -

Wall Street stocks closed higher on Monday after US President Donald Trump hailed "very good" talks with an unidentified Iranian official while shelving plans for new attacks.

Even though Tehran denied that negotiations took place, both the Dow and Nasdaq Composite Index jumped by 1.4 percent.

- Oil tumbles on peace hopes -

Oil prices, in turn, eased as Trump said he would postpone threatened strikes on Iranian energy infrastructure as a result of the talks.

International benchmark Brent crude closed 10.9 percent lower at $99.94 per barrel, while the main US oil contract West Texas Intermediate dropped 10.3 percent to $88.13 per barrel.

Energy prices have surged since the United States and Israel's war against Iran triggered Tehran's retaliation that disrupted oil deliveries through the Strait of Hormuz.

- Oil disruption 'temporary' -

US Energy Secretary Chris Wright said oil market disruptions are "temporary," speaking at a conference in Houston.

Yet, US energy giant Chevron's chief executive Mike Wirth warned that oil prices have yet to fully factor in fallout from the blockade.

"In particular, Asia is facing some real concerns about supply," he said, citing government measures to conserve stocks.

TotalEnergies chief Patrick Pouyanne meanwhile expects "very high" liquefied natural gas prices by the summer if the Strait of Hormuz is not reopened.

- IEA chief issues warnings -

International Energy Agency chief Fatih Birol warned the global economy is under "major threat" from the energy crisis caused by the Middle East war, adding that "no country will be immune".

At least 40 energy assets across nine Middle East countries were "severely" damaged due to the war, Birol added.

- China limits fuel prices -

China has limited the amount by which the country's retail fuel costs can rise, the government announced.

China's state planner, the National Development and Reform Commission, said it hiked the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric ton respectively, starting from midnight.

- Sweden to cut fuel taxes -

Sweden's government said it was proposing to temporarily lower taxes on petrol and diesel to soften the blow of surging energy prices.

If passed by parliament, the proposed tax cut would go into force on May 1 and last until the end of September, and as a first step be lowered to the EU's minimum level.

"All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden's economy to the test," Prime Minister Ulf Kristersson told a news conference.

- Greece announces relief measures -

Greek Prime Minister Kyriakos Mitsotakis said that the government had earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices.

The subsidies are targeted at reducing the cost of diesel fuel, petrol and fertiliser. Part of the initiative is aimed at holding back price hikes in ferry fares to the country's many islands, Mitsotakis said.

- Croatia extends fuel price caps -

Croatia renewed fuel price caps in place since March 9 to curb rises at the pump, Prime Minister Andrej Plenkovic said.

Diesel will be capped at 1.73 euros ($2.01) per litre, instead of a projected 1.86 euros ($2.16), while petrol will be 1.62 euros ($1.88) per litre rather than rising to 1.71 euros ($1.98).

The capped retail prices will apply for two weeks, but won't apply to filling stations along the international highway.

- France urges refinery boost -

The French government urged refiners to quickly increase production on a temporary basis to help reduce tension in the markets for fuels in Europe.

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