US-Iran Standoff Sends Global Markets into Turmoil

Global markets were mostly up on Tuesday, August 25, as investors digested the latest developments in the US-Iran standoff. The U.S. Treasury Secretary Scott Bessent announced fresh sanctions against Iran and warned that countries persisting in doing business with the Islamic Republic would face retaliation.

Oil prices slipped following the announcement, with Brent crude falling to $88.74 per barrel and US benchmark crude oil shedding 2.2% to $83.14 per barrel.

Despite the mixed signals from the energy market, major stock indices in Europe and Asia were generally higher. The DAX in Germany gained 0.5%, while the CAC 40 in Paris added 0.3%. The FTSE 100 in Britain edged 0.1% higher.

The tech-heavy Nasdaq composite fell 0.8% on Monday, with chip giant Nvidia losing 2.9% ahead of its quarterly earnings report on Wednesday.