Global shares rose on Tuesday and Brent crude oil prices were poised for a record monthly increase, as traders came to the end of a tumultuous March dominated by the Iran war.
Iran attacked a fully-loaded oil tanker off Dubai early on Tuesday after President Donald Trump warned the US would obliterate Iran’s energy plants and oil wells if it does not open the Strait of Hormuz.
Still, markets got a lift from a Wall Street Journal report that Trump had told aides he is willing to end the military campaign even if the strait remains largely closed.
The war, which began with the US and Israel launching coordinated strikes against Iran on February 28, has sent shockwaves across global markets and raised the risk of a worldwide recession. MSCI’s gauge of stocks across the globe rose 10.42 points, or 1.08 per cent, to 971.29.
“We’re in an oversold condition and then that coupled with this element of potentially encouraging news has helped to shape the bounce that we’re seeing today,” said Fiona Cincotta, senior market analyst at City Index. She cautioned, however, that the move should be treated carefully.
On Wall Street, the Dow Jones Industrial Average rose 0.9 per cent to 45,646, the S&P 500 added 1.2 per cent to 6,418 and the Nasdaq Composite climbed 2.02 per cent to 21,214.90.
