Markets Assess US-Iran Tensions Amid Fed Rate Meeting

Global markets were cautious on Tuesday as investors assessed conflicting signals over potential US-Iran ceasefire talks and looked ahead to the Federal Reserve's monetary policy meeting.

The relief rally sparked by the decision to pause strikes faded quickly, with the US Dollar Index ending Monday virtually unchanged after opening lower. The index was steady at around 101.50.

Oil prices remained under pressure following a sharp decline in West Texas Intermediate crude, which lost about 9% on Monday. It traded modestly lower early Tuesday and remained around $83.50 per barrel.

The market's cautious mood continued into Tuesday's early European trading session, with Nasdaq futures down about 1%. The Euro and pound also struggled to gain traction, with EUR/USD and GBP/USD consolidating below their respective levels.