US Stocks Rise Amid Middle East Tensions and Inflation Worries

US stock markets opened slightly higher on Tuesday as investors watched developments around the Middle East conflict, oil prices, and upcoming US inflation data. The S&P 500 rose 0.1%, the Nasdaq Composite gained 0.3%, and the Dow Jones Industrial Average added 117 points, or 0.2%. Oil prices remained a major focus for Wall Street, with WTI crude futures up 2.4% at $84.14 a barrel and Brent crude gaining 2.1% to $89.56 a barrel.

The uncertainty around the Strait of Hormuz kept investors cautious, with signs that the important oil-shipping route could reopen weighed against doubts over whether the US and Iran can reach a wider agreement to end the conflict. Nvidia was one of the biggest boosts for the broader stock market, gaining around 2% as investors continued to react to the company's major artificial intelligence investment plans.

The Federal Reserve is watching inflation closely, with important US inflation data due on Wednesday and Thursday. Higher oil prices are creating fresh inflation worries, pushing up costs for businesses and consumers. Dennis Follmer, chief investment officer at Montis Financial, expects inflation to continue moving lower, which could support the case for keeping interest rates steady.