Shanghai crude futures main contract (SC) rallied in short-term trade, up 5.43 pct at 559.5 yuan/barrel. Low-sulfur fuel oil (LU) rose 5.09 pct to 4,930 yuan/ton, while fuel oil gained 4.97 pct to 3,801 yuan/ton.

ING analyst Chris Turner said rising energy prices could prompt markets to reprice other central banks' rate-hike expectations, keeping low-yield currencies such as the yen and Swiss franc under pressure. He noted equities have held up despite higher energy costs, which may reduce the yen and franc's safe-haven appeal, but a more important factor "appears to be low rates and the slow pace of rate hikes by central banks." USD/JPY was down 0.2% at 162.90 after touching a 40-year high of 163.23 on Tuesday. USD/CHF was down 0.1% at 0.8118, near an overnight one-week high of 0.8133.

The U.S. defense secretary and the chairman of the Joint Chiefs will testify at a Senate committee hearing on Tuesday amid rising U.S.-Iran tensions. The session will focus on the Trump administration's supplemental funding request. At least two U.S. service members were killed in an Iranian strike on Friday, and another died in Iraq during a controlled demolition of an Iranian drone. The hearing is scheduled for the Senate afternoon, 02:30 Beijing time.