Oil rises, stocks fall amid US-Iran talk uncertainty

Global markets showed mixed reactions on Tuesday as uncertainty over potential peace talks between the United States and Iran weighed on investor sentiment.

Oil prices climbed amid concerns over supply disruptions, with Brent crude oil rising 3.1 percent to $98.48 per barrel and West Texas Intermediate crude oil gaining 2.8 percent to $92.13.

At the same time, major stock markets declined. Wall Street’s key indices ended lower, with the S&P 500 dropping 0.6 percent. European markets also fell, while most Asian markets closed higher earlier in the day.

The volatility comes as doubts grow over the resumption of US-Iran peace talks. Donald Trump announced an extension of the ceasefire but maintained a military blockade on Iranian ports, adding to tensions.

Iran has criticised the blockade, calling it a violation of the ceasefire, while uncertainty persists over planned negotiations in Pakistan. JD Vance was expected to lead the US delegation, but had not yet departed as of Tuesday.

Analysts say investors remain cautious, balancing hopes for a diplomatic breakthrough with fears of prolonged conflict. While oil prices remain below $100 per barrel, sustained high levels could increase inflation risks and slow global economic growth.

Investors are also watching developments in US monetary policy, as Kevin Warsh signaled independence from political influence during his confirmation hearing.