ISLAMABAD: Global stock markets remained steady on Tuesday, despite a fresh rise in oil prices, following diplomatic efforts between the United States and Iran that hit another impasse, keeping supply concerns alive in the Strait of Hormuz.
Brent crude rose around one per cent above $105 per barrel during Asian trade.
In contrast, US benchmark West Texas Intermediate (WTI) approached $99 per barrel after US President Donald Trump dismissed Tehran’s latest response to Washington’s peace proposal.
He also warned that the ceasefire is fragile and the US-Iran relationship is under pressure until a peace deal is reached ceasefire remained under pressure.
Despite renewed concerns about energy, investors largely avoided panic selling as markets continued to bet against a broader regional escalation.
Gains in artificial intelligence-linked technology stocks also helped support sentiment on Wall Street and across parts of Asia.
Japan’s Nikkei 225 traded higher, Hong Kong shares edged up, whereas mainland Chinese equities slipped slightly amid cautious trading, which traders termed a technical correction.
Analysts said market resilience was increasingly tied to expectations that shipping flows through the Strait of Hormuz would gradually stabilise in the coming weeks.
Stephen Innes of SPI Asset Management warned that any prolonged disruption could sharply tighten financial conditions and trigger stronger inflationary pressures globally.
Trump’s upcoming visit to China later this week is also expected to keep markets focused on geopolitical developments, with the Iran conflict likely to feature prominently in talks with Chinese President Xi Jinping.
