Global stocks gained on Tuesday while oil prices eased as investors weighed the United States’ latest economic pressure on Iran and watched closely for signs of further escalation. The market reaction came as traders assessed Washington’s plan to tighten sanctions against Tehran while keeping a close eye on developments around the Strait of Hormuz.
US Treasury Secretary Scott Bessent described the new strategy as an “economic D-Day” for Iran, warning that countries and businesses continuing to trade with Tehran could also face consequences. The proposed sanctions are expected to target areas including Iran’s digital assets, technology, gold, aviation and shipping sectors as Washington seeks to cut off the country’s access to international financial networks.
The uncertainty around the Strait of Hormuz has also kept energy markets on edge. Talks aimed at reopening the vital shipping route have stalled, while tensions between the United States and Iran have continued. Oil prices had climbed for much of August because of the conflict, raising concerns about inflation and putting additional pressure on bond markets. However, both major oil contracts fell by more than two per cent on Monday before making modest moves in early Asian trading.
Meanwhile, investors turned their attention to technology stocks and Nvidia’s highly anticipated earnings report. Nvidia has become one of the biggest beneficiaries of the global artificial intelligence boom, but investors are increasingly asking whether the company’s results can justify its lofty market expectations. Other major technology companies, including Salesforce and Marvell, are also expected to report earnings this week.
Asian markets were largely positive, with Tokyo, Hong Kong, Shanghai, Seoul, Singapore, Sydney and Wellington recording gains, while London and Paris edged higher at the open. The Nikkei 225 rose 0.5 per cent to 65,856.43, while Brent crude fell 0.8 per cent to $91.47 per barrel and West Texas Intermediate declined 0.7 per cent to $84.39. With Iran tensions, inflation and interest-rate expectations all competing for investors’ attention, global markets remain highly sensitive to the next major development.
source: punch
