US stocks slipped on Tuesday while oil prices resumed their climb, as continuing airstrikes on Iran and fresh missile attacks across the Middle East dampened the optimism that had lifted markets a day earlier.The S&P 500 fell 0.6%, giving back nearly half of its previous session’s gain. The Dow Jones Industrial Average dropped 363 points, or 0.8%, while the Nasdaq Composite declined 0.5%.Oil prices rose sharply amid persistent tensions. Brent crude advanced 3.5% to $103.47 per barrel after having slumped more than 10% in the previous session. Benchmark US crude also gained $2.20 to trade at $90.33 a barrel, while Brent added $1.47 to reach $101.41 in early trade, AP reported.Futures signalled a cautious start to the session. Contracts tied to both the Dow Jones Industrial Average and the S&P 500 fell 0.1% before the opening bell, while Nasdaq futures were largely unchanged.Markets remained volatile as military action continued. Airstrikes battered Iran’s capital and Iranian missiles and drones targeted Israel’s Tel Aviv and other sites across the region. With additional US Marines heading to the Gulf and both sides maintaining heavy barrages, concerns over the conflict’s escalation continued to weigh on investor sentiment.The latest developments came a day after US President Donald Trump said the United States had made progress in talks with Iran to end hostilities. He had also extended his deadline for Tehran to reopen the Strait of Hormuz, a vital global shipping route whose disruption has pushed up fuel prices and threatened economic stability.Iran, however, denied that negotiations had taken place. Iranian parliament speaker Mohammad Bagher Qalibaf said on social media platform X that “fakenews is used to manipulate the financial and oil markets”.Despite the uncertainty, some analysts saw tentative signs of progress. “Still, while there’s clearly a long way to go until some sort of ceasefire is agreed, and peace restored, we do at least seem to have taken the first step towards those ends,” said Michael Brown, senior research strategist at Pepperstone.Global markets showed mixed trends. In Europe, France’s CAC 40 rose 0.4% to 7,759.97 in early trade, while Germany’s DAX edged up 0.2% to 22,695.54. Britain’s FTSE 100 was largely flat at 9,899.12.Asian equities rebounded more strongly. Japan’s Nikkei 225 gained 1.4% to close at 52,252.28 after earlier losses, while South Korea’s Kospi surged 2.7% to 5,553.92. Hong Kong’s Hang Seng jumped 2.8% to 25,063.71 and China’s Shanghai Composite added 1.8% to end at 3,881.28. Australia’s S&P/ASX 200 rose 0.2% to 8,379.40.Investors continued to track developments around the Strait of Hormuz, whose disruption has rattled global energy supply chains. The conflict, which began in late February, has driven sharp swings in financial markets, particularly in Asia where economies are highly dependent on energy shipments through the route.In corporate developments, Estee Lauder and Spanish cosmetics firm Puig confirmed they are in merger talks that could bring together brands such as MAC, Clinique, Charlotte Tilbury and Apivita. Estee Lauder said no final decision had been taken, and its shares were little changed in premarket trading.Separately, Toyota Motor Corp.’s shares rose 0.6% after the automaker announced a $1 billion investment in its Kentucky and Indiana plants. The move is part of a broader plan unveiled in November to invest up to $10 billion in the US over the next five years, as Japanese manufacturers seek to underline their contribution to American employment and economic growth.Markets are expected to remain sensitive to geopolitical developments, particularly any signals on ceasefire prospects, energy supply disruptions and oil price movements in the coming sessions.
