Stocks extend gains, oil jumps amid Trump's Tehran warning,

Oil prices climbed Tuesday following a dramatic warning from former U.S. President Donald Trump, who urged residents of Tehran to evacuate, fueling fears of an all-out war between Israel and Iran.

Despite the escalating missile exchanges between the two nations, global equities mostly rose, supported by hopes the conflict would remain localized. Markets also found some optimism after Trump suggested Iran might be open to resuming nuclear talks.

After Friday’s oil rally—triggered by Israel’s strikes on Iran—prices had dipped over one percent on Monday as traders bet the conflict wouldn’t spread across the Middle East. However, prices rebounded roughly two percent Tuesday after Trump posted on social media: "Iran should have signed the 'deal' I told them to sign... IRAN CAN NOT HAVE A NUCLEAR WEAPON... Everyone should immediately evacuate Tehran!"

The statement kept investors on edge, with analysts warning that any further escalation could send oil prices soaring.

Meanwhile, the U.S. Navy’s aircraft carrier USS Nimitz left Southeast Asia after canceling a visit to Vietnam, as the Pentagon deployed "additional capabilities" to the region.

Israeli Prime Minister Benjamin Netanyahu claimed the military campaign was "changing the face of the Middle East." While Trump asserted the U.S. had "nothing to do" with Israel's actions, Iran’s foreign minister said the U.S. president could stop the attacks with "one phone call."

Trump, attending the G7 summit in Canada, hinted at upcoming negotiations with Iran, stating: "As soon as I leave here, we're going to be doing something." He cut his trip short, telling reporters:  "This is big stuff."

According to the Wall Street Journal, Tehran has shown interest in de-escalating tensions and restarting nuclear discussions, especially as the U.S. has so far avoided direct military involvement.

Global markets reacted with cautious optimism. Tokyo, Seoul, Sydney, Singapore, and Taipei posted gains, while Shanghai and Hong Kong lagged.

Rodrigo Catril of National Australia Bank noted: "Risk assets are enjoying a positive start to the new week amid signs the Israel-Iran war remains limited to the two countries without wider regional escalation."

Meanwhile, traders also focused on the G7 summit, where global leaders challenged Trump’s trade policies, and on upcoming central bank decisions—especially the Bank of Japan’s expected rate announcement later in the day.

Key figures at around 0230 GMT

West Texas Intermediate: UP 1.6 percent at $72.94 per barrel
Brent North Sea Crude: UP 1.4 percent at $74.25 per barrel
Tokyo - Nikkei 225: UP 0.5 percent at 38,501.08 (break)
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 24,038.68
Shanghai - Composite: DOWN 0.1 percent at 3,385.61
Euro/dollar: DOWN at $1.1552 from $1.1562 on Monday
Pound/dollar: DOWN at $1.3569 from $1.3579
Dollar/yen: UP at 144.92 yen from 144.79 yen
Euro/pound: UP at 85.14 pence from 85.12 pence
New York - Dow: UP 0.8 percent at 42,515.09 (close)
London - FTSE 100: UP 0.3 percent at 8,875.22 (close)