Asia-Pacific stocks rose broadly in Monday's early trading, with investors overlooking renewed diplomatic setbacks between the U.S. and Iran, even as escalating Middle East tensions pushed oil prices higher.

Japan's Nikkei 225 gained 0.53%, reaching a record high, while South Korea's KOSPI index advanced 1%, also hitting a historic peak.

In contrast, Australia's S&P/ASX 200 index declined by 0.54%.

Market sentiment remained resilient despite U.S. President Trump canceling plans on Saturday to send envoys Steve Witkoff and Jared Kushner to Islamabad for talks with Iran.

"Too much time wasted on travel, too much work! Also, huge infighting and chaos within their 'leadership'," Trump posted on Truth Social.

Following the collapse of the second round of U.S.-Iran peace talks, oil prices climbed approximately 2%.

As of 7:35 p.m. ET Sunday (7:35 a.m. Monday Beijing time), Brent crude futures rose over 2% to $107.49 per barrel, while U.S. crude futures increased 1.79% to $96.19 per barrel.

Tensions persisted along the strategic Strait of Hormuz after Iran's Revolutionary Guard reportedly boarded and inspected two cargo ships near the waterway.

U.S. stock index futures edged lower, with Dow futures down 0.2%, or 130 points. S&P 500 futures fell 0.3%, and Nasdaq 100 futures declined 0.3%.

On Friday, both the S&P 500 and Nasdaq Composite closed at record highs. The S&P 500 finished up 0.8% at 7,165.08 points, while the Nasdaq gained 1.63% to 24,836.60 points. However, the Dow Jones Industrial Average dropped 79.61 points, or 0.16%, closing at 49,230.71 points.