Global Markets Rebound as Investors Overlook Iranian Sanctions

Global markets showed signs of recovery on Tuesday as investors largely shrugged off US plans to expand sanctions against Iran. The US Treasury Secretary, Scott Bessent, warned countries to cut ties with Iran or face secondary sanctions, but stopped short of imposing penalties.

The move triggered a modest overnight pullback in oil prices and government bond yields. However, the markets soon regained their composure as investors took comfort in the softer-than-feared US announcement.

Wall Street futures pointed to higher restarts in New York, while European shares rose 0.4%. The dollar also inched up against the euro and Japanese yen.

The global cryptocurrency market saw a significant boost, with Bitcoin crossing the $80,000 level for the first time since mid-May. Michael Metcalfe, head of global macro strategy at State Street Global Markets, attributed the 'negative bias' towards the dollar to concerns about the US fiscal situation.