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Oil prices edged lower on Tuesday after Iran and Israel agreed to halt renewed exchanges of strikes in a bid to advance negotiations to end the war, while U.S. President Donald Trump reiterated his optimism that a potential deal could be reached within days.
International benchmark Brent crude and U.S. benchmark West Texas Intermediate (WTI) both fell more than 1%, trading at around $93 and $89.7 per barrel, respectively, as of 7:10 a.m. GMT.
Asian markets bounced back sharply after heavy losses in the previous session. Japan’s Nikkei 225 climbed 2.2%, while South Korea’s Kospi surged 8.2%. Hong Kong’s Hang Seng Index was little changed, and China’s Shanghai Composite gained 1.3%.
European markets opened slightly lower, with the pan-European Stoxx Europe 600 slipping 0.1%, while Germany’s DAX 30 and Spain’s IBEX 35 each edged down 0.1%, France’s CAC 40 lost 0.2%, and Britain’s FTSE 100 fell 0.2%.
In contrast, Türkiye’s BIST 100 index rose 0.3%, while futures tied to major U.S. stock indexes pointed higher after the previous session’s gains.
Gold rose back above the $4,330 level, silver gained 0.3% to $68.4 per ounce, platinum held steady at $1,745, and palladium advanced 0.7% to more than $1,200 per ounce.
Cryptocurrency markets were also relatively stable, with bitcoin dipping 0.1% to $63,120, ethereum rising 0.4% to $1,680, and the total cryptocurrency market capitalization increasing 0.3%.
Investor sentiment improved after Iran and Israel announced Monday that they had stopped military operations following a brief escalation. Israeli Prime Minister Benjamin Netanyahu stated that “the fire on that front is contained” shortly after Tehran indicated it had ended its military action.
The latest confrontation began when Iran launched missiles toward Israel on Sunday in response to Israel’s ongoing military campaign against Hezbollah in Lebanon. Israel responded with strikes of its own despite efforts by U.S. President Donald Trump to discourage further escalation. The exchange triggered another round of Iranian missile attacks before Tehran announced it would cease fire.
Oil prices had jumped more than 5% earlier on Monday as traders reacted to the risk of disruption. However, those gains largely faded after indications that both sides were stepping back from further military action.
Separately, Trump said he believes a deal with Iran could be wrapped up within days. Speaking to reporters early Tuesday, he noted that talks with Tehran were still moving forward despite the recent flare-up and suggested an agreement could come within "one or two days." He also said the Strait of Hormuz would reopen immediately once the deal is signed.
Attention is now turning to U.S. inflation data due Wednesday. Investors are closely watching the consumer price index report, which is expected to show annual inflation at 4.2%, a level that could influence future interest-rate decisions by the Federal Reserve.
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