Oil Prices Rise as Middle East Tensions Intensify; Global Markets Remain Cautious
Oil prices extended gains on Tuesday amid heightened geopolitical risk, as hostilities between Israel and Iran entered a sixth day, fuelling investor concerns over potential US military involvement.
Former US President Donald Trump intensified the rhetoric, calling for Iran’s unconditional surrender and warning that American patience was wearing thin, stoking fears of further escalation.
Brent crude futures rose 0.3% to $76.67 per barrel, while US crude gained 0.4% to $75.16. Both benchmarks had already surged over 4% in the previous session.
Despite some easing in broader market volatility, sentiment remained fragile. MSCI’s Asia-Pacific index (excluding Japan) slipped 0.3%, reflecting a cautious stance across the region. In currency markets, the US dollar held firm near recent highs against major peers.
On Wall Street, equities stayed under pressure:
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Dow Jones Industrial Average closed down 0.7% at 42,215.80
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S&P 500 lost 0.8%, ending at 5,982.72
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Nasdaq Composite dropped 0.9% to 19,521.09
In fixed income, the yield on 10-year US Treasuries fell to 4.389%, down from 4.454% the previous day, as investors sought safety in government bonds.
Overall, risk appetite remained subdued, with markets closely monitoring developments in the Middle East and bracing for further volatility.
