Oil prices rose and global stock markets showed mixed results on Tuesday as optimism over potential US-Iran nuclear talks faded, reigniting geopolitical supply concerns.
Brent crude futures gained over 1% to trade near $72 per barrel, while West Texas Intermediate (WTI) climbed above $68. The uptick came after Iran's foreign ministry signaled that indirect negotiations with the US in Oman had not yielded a breakthrough, dampening hopes for a swift de-escalation of tensions in the Middle East.
Equity markets were divided: Asian indexes mostly slipped, with Japan's Nikkei 225 dropping 0.5% and Hong Kong's Hang Seng losing 0.3%. In Europe, the STOXX 600 edged up 0.2%, while US futures pointed to a flat open on Wall Street.
Analysts noted that the uncertain diplomatic outlook is keeping energy markets on edge. "The lack of progress in talks is a reminder that supply risks from the region remain high," said one commodity strategist. "Investors are pricing in a higher risk premium for crude."
Meanwhile, the US dollar strengthened against major currencies, adding pressure on emerging market assets. Gold held steady near $2,330 per ounce as traders sought safe-haven assets.
The mixed market reaction reflects caution ahead of key US inflation data later this week, which could influence Federal Reserve interest rate decisions.