US-Iran Tensions Weigh on Global Markets as Dollar Remains Steady

Global markets remained 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 at around 101.50.

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