Oil prices increase once again

ISLAMABAD: Oil prices nudged higher on Tuesday, while global stock markets went on mixed errands as investors tried to balance a little optimism about a US-Iran peace deal, against new US military strikes in the Middle East, kind of at the same time.

Market mood got fainter after US forces carried out strikes on Monday in southern Iran. They hit boats suspected of laying mines, and also missile launch sites.

That sequence cut down the earlier optimism people had about a fast, near-term agreement. At the same time, Iranian officials were in Doha talking with Qatar’s prime minister.

They talked about a possible arrangement with the United States, meant to stop the conflict. Still, both Washington and Tehran played things down, saying in effect not to expect some quick breakthrough.

Also, there were reports that negotiators discussed restarting the Strait of Hormuz around 30 days after any such deal. That lingering uncertainty kept energy markets jumpy.

Brent crude climbed more than 1% to $97.32 a barrel, and US West Texas Intermediate edged up too, though it still landed a weekly decline. As for equities, Asia-Pacific trading turned a bit uneven.

MSCI’s regional index excluding Japan rose about 0.8%, yet Japan’s Nikkei slipped 0.2%. In futures, US S&P 500 and Nasdaq contracts firmed, but European futures kept showing mixed vibes. Currency markets looked like a haven for buyers.

The US dollar stayed roughly unchanged, while the euro and British pound dipped slightly. Versus the yen, the dollar held flat. Bond markets were fairly steady after the recent losses.

However, analysts cautioned that inflation pressures tied to higher energy prices, plus ongoing geopolitical tension, could mean borrowing costs stay stubbornly elevated.