ECB chief economist Lane said that although prospects for peace have improved, uncertainty remains high and inflation could remain above 2% for an extended period.

Markets have steadied as investors weigh early progress in Iran peace talks and a U.S. decision to allow some Iranian crude sales. A U.S. 60-day license permits the sale of limited volumes of Iranian oil and petroleum products. Rebecca Babin, managing director and senior energy trader at CIBC Private Wealth Management, said, "The road to a deal remains long; however, markets may price in a supply glut before it arrives — just as they sometimes anticipate shortages before they materialize — oil prices often overshoot."

Malaysia's Finance Ministry said about 70,000 commercial vehicles in Sabah and Sarawak will receive diesel at 2.15 ringgit per litre.