Oil Prices Rise Amid Ongoing Tensions Between US and Iran

The global markets were mixed on Tuesday as traders assessed the ongoing tensions between the US and Iran. Oil prices continued their climb, rising 1.29% to $88.90 per barrel for Brent crude, while U.S. crude rose 1.22% to $83.17.

However, global shares retreated, with the MSCI's gauge of stocks across the globe down 0.28%. The Nasdaq Composite was particularly hard hit, falling 0.79%, as tech stocks dragged it down.

The Strait of Hormuz remained closed, with Iran's Supreme National Security Council secretary stating that it will stay shut until the US accepts their conditions to end the war. This has led to increased uncertainty over the global inflation outlook.

Market analysts are cautioning that any form of resolution between the two countries may be a long way off, and that markets should prepare for a 'war of attrition' with oil prices potentially sitting in the $75 to $95 range while they wait to see who blinks first.