Oil Prices Rise as US Strikes in Iran Stall Peace Deal Hopes, Global Stocks Turn Mixed

Global oil prices climbed on Tuesday while stock markets showed mixed performance, as renewed U.S. military strikes in southern Iran dampened investor hopes for an imminent peace agreement between Washington and Tehran. The developments added fresh uncertainty to already fragile global markets.

The strikes, described by U.S. officials as “defensive action,” came at a sensitive moment as Iran’s top negotiators and foreign minister were reportedly in Doha holding discussions with Qatar’s leadership over a potential ceasefire deal. The talks aimed to end a three-month-long conflict, but progress now appears increasingly uncertain.

Despite diplomatic activity, U.S. Secretary of State Marco Rubio tempered expectations, warning that any agreement with Iran could still take “a few days,” effectively cooling optimism in financial markets that had been pricing in a near-term resolution.

Oil reacted quickly to the geopolitical tension, with Brent crude jumping more than 2% to $98.21 per barrel in Asian trading. West Texas Intermediate also showed volatility, reflecting investor anxiety over potential supply disruptions, particularly around strategic routes like the Strait of Hormuz.

Meanwhile, global equities moved unevenly. Asian markets gained modestly, led by Hong Kong’s tech and chipmaking stocks, while Japan’s Nikkei slipped. U.S. futures edged higher, but European markets were mixed, highlighting widespread uncertainty as traders balanced hopes for peace against escalating tensions in the Middle East.

source: Reuters