Global equity markets cautious while oil holds near $ 110

Wednesday, 8 April 2026 02:02 - - {{hitsCtrl.values.hits}}

Global equity markets traded cautiously on Tuesday, while oil prices held near $110 a barrel as investors remained on edge over the risk of further escalation in the Middle East and an impending deadline for a potential agreement.

Markets have been unsettled since the US-Israel conflict with Iran intensified at the end of February, with Tehran effectively shutting the Strait of Hormuz—a critical artery for global energy shipments—raising concerns over inflation.

Although investors have been hoping for a breakthrough, negotiations have so far made little progress. US President Donald Trump has set a deadline of 8 p.m. Eastern Time on Tuesday (0000 GMT Wednesday) for an agreement, leaving markets in a holding pattern.

The uncertainty has supported the US dollar, while oil prices continued to edge higher. Brent crude rose 0.4% to $110.19 a barrel, while US West Texas Intermediate climbed 0.8% to $113.31.

Asian markets showed mixed movements. MSCI’s broad Asia-Pacific index excluding Japan rose 0.4%, while Japan’s Nikkei reversed earlier gains to trade 0.2% lower. US stock futures declined 0.55%, while European markets were expected to open higher after a holiday closure.

A strong quarterly profit outlook from Samsung Electronics offered some support to sentiment, although investor focus remained firmly on geopolitical developments.

Markets were effectively waiting for clarity. Iran has indicated it is seeking a lasting resolution rather than a temporary ceasefire and has resisted pressure to reopen the Strait of Hormuz, which handles roughly a fifth of global oil and gas supply. Trump has warned of severe consequences if Iran fails to meet the deadline, including possible strikes on critical infrastructure.

The conflict has also heightened fears of stagflation, complicating the global interest rate outlook. Traders are no longer pricing in US Federal Reserve rate cuts this year.

Recent data showed US services sector growth slowed in March, while input costs rose at the fastest pace in over 13 years, pointing to rising inflationary pressure linked to the prolonged conflict.

Currency markets remained steady, with the euro at $1.1538 and the dollar index near recent highs at 100.06, reflecting continued demand for the U.S. currency as a safe haven. The Japanese yen traded at 159.91 per dollar, close to the 160 level seen as a potential trigger for intervention by Tokyo.

Gold prices eased slightly, declining 0.17% to $4,640 per ounce in early trading.