Global markets edged lower on Tuesday as investors awaited the outcome of the U.S.-Iran standoff, while oil prices surged amid escalating tensions.
MSCI’s global equities gauge fell 0.6%, while U.S. stocks also dipped: the Dow Jones Industrial Average dropped 409.83 points (0.88%) to 46,260.05, the S&P 500 lost 60.07 points (0.91%) to 6,551.76, and the Nasdaq Composite declined 276.66 points (1.26%) to 21,719.95. In Europe, the STOXX 600 fell 0.96%, and the FTSEurofirst 300 slipped 1.04%.
Investors remained cautious as Iran showed no sign of reopening the Strait of Hormuz, a critical global oil transit point, despite President Donald Trump’s ultimatum. Iranian media reported intensified strikes targeting railways, bridges, an airport, and a petrochemical plant, prompting fears of further escalation.
Oil prices responded sharply: U.S. crude rose 3.02% to $115.81 per barrel, briefly touching $117.63, while Brent crude traded at $110.14 per barrel. The closure of the strait has raised concerns about supply disruptions, driving global energy costs higher.
Economic uncertainty has also affected interest rates and currencies. The U.S. dollar approached its highest level in nearly 11 months, with the dollar index at 99.93. The euro strengthened slightly to $1.1569, and the yen fell, with the dollar trading at 159.94 yen.
U.S. Treasury yields edged up in response to the looming Iran deadline. The 10-year note yield rose 2.8 basis points to 4.363%, the 30-year yield increased 4.1 basis points to 4.9306%, and the 2-year yield ticked up 1.2 basis points to 3.862%.
Precious metals were mixed: spot gold held steady at $4,647.46 per ounce, while silver fell 2.38% to $71.05 an ounce. Cryptocurrencies also declined, with Bitcoin down 2.45% to $68,119.25 and Ethereum off 3.34% to $2,077.21.
Investors remain on edge as the standoff continues, with potential military action posing risks of further market volatility and a sharp rise in global oil prices.
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