Markets Tread Carefully as US-Iran Tensions Stay in Focus
Stocks, oil, and gold all moved cautiously Tuesday as traders weighed Trump's claim that Iran wants a deal against ongoing military exchanges.
If you've been following the US-Iran saga, Tuesday's European session felt a lot like déjà vu. President Trump told reporters that Iran reached out to him looking to cut a deal — which, as market watchers quickly noted, is basically the exact same script we saw play out before the previous ceasefire was brokered. So here we are, more than a month later, back at square one. The silver lining? At least both sides still seem to have some appetite for talking rather than just fighting.
Oil was the most restless asset in the room. WTI crude dipped to around $72.40 during the session before clawing back to $74.01, up 0.7% on the day. That kind of intraday whipsaw tells you traders are genuinely uncertain — every new headline about fresh strikes between the US and Iran sends prices lurching in a different direction. If you're filling up your tank or watching energy stocks, buckle up.
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The US dollar had a wobbly morning but mostly recovered. EUR/USD briefly popped to 1.1450 before settling around 1.1425, barely up 0.1% on the day. GBP/USD had a similar story, touching 1.3430 before sliding back to flat near 1.3385. The NZD led all major currencies while the USD and CAD trailed — a slightly unusual mix that reflects the broader uncertainty in the room.
Equity traders are in wait-and-see mode, but tech shares are trying to stage a comeback after a rough stretch. S&P 500 futures were up a modest 0.2%, while Nasdaq futures added 0.7% — chipmakers like Micron and Sandisk each jumped nearly 5% in pre-market trading. Meanwhile, gold hit $4,105 (up 0.7%) and silver climbed 1.1% to $58.98, which is exactly what you'd expect when geopolitical nerves are running high. Ten-year Treasury yields edged up 2 basis points to 4.587%, suggesting bond markets aren't panicking but aren't relaxed either.
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