SINGAPORE: Oil prices fell on Tuesday while global equities wobbled and bond markets steadied after US President Donald Trump said he had paused a planned attack on Iran and signaled there was a “very good chance” of a nuclear agreement.
Oil Prices Pull Back
Brent crude futures dropped nearly 2 percent to $109.94 a barrel, while US West Texas Intermediate fell 1.54 percent, as easing geopolitical fears prompted a pullback in energy markets. Trump said on Monday he had halted a military strike to allow space for negotiations after Tehran sent a new peace proposal to Washington, adding that discussions could lead to a deal preventing Iran from developing a nuclear weapon.
Markets Remain Cautious
Investor sentiment remained fragile, however, after markets were already rattled by a weekend drone strike in the United Arab Emirates that underscored continuing regional risks despite diplomatic signals.
“We’ve seen a lot of back and forth already,” said IG market analyst Fabien Yip, adding that markets were waiting for concrete developments, particularly regarding safe shipping through the Strait of Hormuz. “Until we actually see real action… the market in general is shrugging off the commentary from either side,” he said.
Shares Mixed as Uncertainty Lingers
Global equity markets traded unevenly. MSCI’s broad Asia-Pacific index outside Japan fell more than 1 percent, while Japan’s Nikkei slipped 0.3 percent and South Korea’s Kospi dropped over 3 percent. Chinese blue-chip shares also declined. US futures turned lower after early gains, with Nasdaq futures down 0.5 percent and S&P 500 futures off 0.3 percent.
Bonds Steady, Yen Watched
Government bond markets stabilized after an earlier selloff. Benchmark 10-year US Treasury yields eased to 4.6034 percent, retreating from more than one-year highs. In currency markets, the US dollar held firm at 158.99 yen, keeping traders alert for possible intervention from Tokyo. Markets now turn to upcoming earnings from chip giant Nvidia, seen as a key test for the AI-driven rally in global equities.
