Oil rises, stocks mixed as new US strikes dampen peace deal optimism

Oil prices climbed on Tuesday after US-Iran peace negotiations in Doha faced setbacks due to new US military strikes in southern Iran. Iran’s top negotiator and foreign minister met with Qatar’s prime minister to discuss a potential deal to end the war, but progress was overshadowed by US airstrikes targeting mine-laying boats and missile sites, described as defensive actions. Brent crude futures rose over 1% to $97.32 per barrel, while US West Texas Intermediate crude saw slight gains but remained down 5.5% from Friday’s close. The Nikkei reported discussions on reopening the Strait of Hormuz 30 days after a ceasefire agreement, though skepticism lingers over the deal’s specifics. Stock markets reacted unevenly: MSCI’s Asia-Pacific index rose 0.8%, while Japan’s Nikkei fell 0.2%. Nasdaq futures climbed 0.9%, and S&P 500 futures added 0.68%, but European indices showed mixed movements, with the EUROSTOXX 50 futures down 0.36%. The dollar stabilized on safe-haven demand, though it remained below a six-week peak. The euro dropped 0.06% to $1.1636, and sterling eased to $1.3498. Bond yields held steady after last week’s volatility, with the 10-year US Treasury yield at 4.5024%. Spot gold fell 0.5% to $4,545.90 per ounce. Analysts noted persistent inflation and fiscal risks, warning that commodity supply disruptions and higher borrowing costs could prolong economic pressures. Geopolitical tensions, though easing temporarily, may not resolve supply chain issues quickly.