Bangkok, Jun 25 (AP) Asian shares have logged modest gains after US stocks climbed to near their all-time high as investors considered comments by Federal Reserve Chair Jerome Powell to Congress.

Oil prices gained more than 1 per cent early Wednesday after falling about 6 per cent on Tuesday on hopes that Israel's war with Iran will not hinder the global flow of crude. Lower oil prices could give the Federal Reserve leeway to cut interest rates to help the economy, and Powell said it is waiting for the right time to do so.

The fragile ceasefire between Iran and Israel, announced by Trump a day earlier, appeared to be holding after initially faltering.

US benchmark crude gained 1.2 per cent to USD 65.16 per barrel, while Brent crude, the international standard, climbed 1.1 per cent to USD 66.95.

Lower oil prices could give the Federal Reserve leeway to cut interest rates to help the economy, and Powell said it will continue to wait and see how the economy evolves before deciding whether to reduce its key interest rate, a stance directly at odds with President Donald Trump's calls for immediate cuts.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in testimony Tuesday before the House Financial Services Committee.

In Asian trading early Wednesday, Tokyo's Nikkei 225 picked up 0.3 per cent to 38,917.08 and the Hang Seng in Hong Kong advanced 0.9 per cent to 24,386.59.

The Shanghai Composite index rose 0.5 per cent to 3,437.10.

In South Korea, the Kospi edged 0.2 per cent higher to 3,110.19, while Australia's S&P/ASX 200 added 0.1 per cent to 8,562.90.

Taiwan's Taiex gained 1.1 per cent and the Sensex in India was up 0.7 per cent. In Bangkok, the SET slipped 0.4 per cent.

“The world can now move on to face other difficult choices like tariffs and things like that. So I think the market is well on its way to rebound and could again reach new levels,” said Frances Lun, CEO of GEO Securities in Hong Kong.

On Tuesday, the S&P 500 climbed 1.1 per cent to 6,092.18, following up on big gains for stocks across Europe and Asia, after President Donald Trump said late Monday that Israel and Iran had agreed to a “complete and total ceasefire.” The main measure of Wall Street's health is back within 0.8 per cent of its record set in February after falling roughly 20 per cent below during the spring.

The Dow Jones Industrial Average jumped 1.2 per cent to 43,089.02, and the Nasdaq composite rallied 1.4 per cent to 19,912.53.

The fear throughout the Israel-Iran conflict has been that it could squeeze the world's supply of oil, which would pump up prices for gasoline and hurt the global economy. Iran is a major producer of crude, and it could also try to block the Strait of Hormuz off its coast, through which 20 per cent of the world's daily oil needs passes on ships.

Now, oil prices have dropped so much in the last two days that they're below where they were before the fighting began nearly two weeks ago.

With the global oil market well supplied and the OPEC+ alliance of producing countries steadily increasing production, oil prices could be headed even lower as long as the ceasefire holds and a lasting peace solution can be found.

“Easing stress in energy markets is excellent news for everyone who doesn't want to see higher oil prices translating into accelerating inflation and tighter monetary policy. So the market mood is restored,” Ipek Ozkardeskaya, a senior analyst with Swissquote Bank, said in a commentary.

The Fed has said repeatedly that it wants to wait and see how much higher tariffs imposed by Trump will hurt the economy and raise inflation before committing to its next move. So far, the economy seems to be holding up OK, though a report on confidence among US consumers came in weaker than economists expected on Tuesday, and inflation has remained only a bit above the Fed's 2 per cent target.

In currency dealings, the US dollar rose to 145.10 Japanese Yen from 144.93 Yen. The euro climbed to USD 1.1617 from USD 1.1610. (AP) RD RD

Federal Reserve policy stance influences markets as rate timing and tariffs shape investor sentiment and oil price dynamics. Markets gained as investors focused on the Federal Reserve's 'wait-and-see' approach to interest rates and on tariff-related risks. Powell's testimony tied future easing to economic indicators such as inflation and consumer confidence. Concurrent declines in oil prices-attributed to a fragile ceasefire and adequate supply-reduced near-term inflationary pressure, potentially easing the Fed's path to future rate adjustments. Together, Fed timing, oil-price dynamics, and tariffs dominated equity, commodity, and currency moves.