HONG KONG — Oil prices extended their gains on Tuesday while stocks across Asia and other major markets came under pressure as hopes for a breakthrough between the United States and Iran over the Strait of Hormuz continued to fade.
The renewed market tension followed the expiration of a 60-day negotiating period between Washington and Tehran without an agreement to end the conflict or restore normal shipping through the strategically important waterway. The uncertainty has raised fresh concerns about global energy supplies and the potential economic consequences of prolonged disruption.
Brent crude, the international benchmark, climbed above $91 a barrel, while U.S. West Texas Intermediate crude also advanced. Brent was trading around $91.22 per barrel, while WTI reached about $85.31, putting oil prices on track for a third consecutive session of gains.
The Strait of Hormuz has become a central focus for investors because of its importance to global energy markets. With shipping through the waterway significantly reduced, traders are increasingly concerned that continued confrontation could restrict the movement of crude and other energy products for an extended period.
The latest price gains came after Iran indicated that it would adopt a more offensive military posture as negotiations stalled. At the same time, Washington ruled out extending a temporary ceasefire arrangement, further weakening expectations that a quick diplomatic solution could restore stability to the region.
The market reaction was not limited to oil. Asian equities mostly declined, with Japan’s Nikkei 225 falling sharply and South Korea’s Kospi also recording losses. European markets moved lower as investors assessed the possibility that sustained energy prices could intensify inflationary pressures and complicate monetary policy.
U.S. stock futures also pointed to a weaker opening on Tuesday. Technology and growth stocks were particularly vulnerable as higher oil prices and rising bond yields increased concerns about inflation and borrowing costs. Shares of major technology companies, including Nvidia, Microsoft, Meta and Alphabet, were among those facing pressure before the U.S. market opened.
The rise in Treasury yields has added another layer of concern for investors. The yield on the U.S. 30-year Treasury reached its highest level since 2007, reflecting growing worries that prolonged energy disruptions could keep inflation elevated. Higher long-term yields can make equities less attractive while also increasing financing costs for businesses and consumers.
Investors are now watching diplomatic developments closely, particularly any indication that Washington and Tehran could return to negotiations. A credible agreement to restore shipping through the Strait of Hormuz could ease pressure on crude prices and improve sentiment across global markets.
For now, however, the absence of a deal is keeping investors cautious. The combination of geopolitical uncertainty, restricted energy flows, higher oil prices and rising bond yields has created a difficult environment for stocks, with markets increasingly sensitive to every development from the Middle East.
The immediate concern is whether the disruption remains temporary or develops into a prolonged energy shock. If oil prices stay elevated, businesses and consumers could face higher costs, while central banks may have less room to ease monetary policy. That prospect is keeping investors defensive as they await clearer signs of progress between the United States and Iran.
