
Oil prices pulled back on Tuesday after sharp gains in the previous session, with Brent and WTI declining as traders reassessed the risk of immediate supply disruptions despite escalating U.S.–Iran tensions. The fragile ceasefire appears close to breaking down following attacks near the Strait of Hormuz and rising military threats from both sides.
U.S. stock futures edged higher early Tuesday, with S&P 500, Nasdaq 100, and Dow futures posting modest gains after a sharp sell-off in the previous session. On Monday, markets declined as geopolitical tensions escalated, with reports of Iranian drone and missile attacks on the UAE and U.S. forces engaging Iranian boats in the Strait of Hormuz, raising concerns about a renewed conflict.
Looking ahead, attention turns to a busy earnings calendar, along with key economic data such as the U.S. job openings report and Non-Farm Payroll, which could influence the next market direction.
Gold is showing a modest recovery above the $4,500 level after hitting a one-month low, but the rebound lacks strong support and may be short-lived. Ongoing U.S.–Iran tensions are pushing oil prices higher, fueling inflation concerns and increasing expectations that central banks, particularly the Federal Reserve, may keep a hawkish stance or even consider rate hikes.
This environment is supporting a stronger U.S. dollar and higher bond yields, both of which are weighing on gold. Despite geopolitical risks, the metal remains under pressure, with its near-term outlook still bearish unless stronger buying momentum emerges.
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