Crude oil prices dropped to $91 a barrel on Tuesday, extending losses from the previous session, as US President Donald Trump suggested that further military strikes on Iran may not be necessary. The decline came after Trump's remarks hinted at a possible easing of tensions following the US midterm election results.
The drop in oil prices provided some relief to financial markets, easing inflationary pressures. Dilin Wu, a strategist at Pepperstone Group, told Bloomberg that the sharp decline in oil prices had given markets some much-needed breathing room.
Meanwhile, futures for the S&P 500 index rose 0.2 percent, while those for the Nasdaq 100 saw little change. European stock futures gained 0.9 percent. Investors remained cautious ahead of the US inflation data for October, with economists expecting consumer prices to rise at a moderate pace.
In India, the GIFT Nifty gained more than 0.8 percent, signaling a positive opening for domestic equity markets when trading resumes on Wednesday. Indian stock markets were closed on Tuesday due to Diwali Balipratipada, but benchmark indices had recovered from early losses to close at their highest levels in more than eight months on Monday.