LONDON, March 24 - World stocks posted modest gains Tuesday as oil prices held above $100 a barrel, following President Donald Trump’s delay of planned strikes on Iran’s power grid. Markets remained jittery after Iran launched missile waves at Israel.
Trump extended his ultimatum for Iran to reopen the Strait of Hormuz by five days, citing "productive" talks. The strategic waterway remains closed, disrupting about 20% of global oil and LNG shipments.
BNY's Bob Savage said markets are weighing fragile optimism against ongoing conflict and tightening financial conditions. MSCI’s World Stock Index rose 0.3%, still roughly 7% below February peaks.
U.S. Treasury yields climbed, with the 10-year at 4.36%. Investors now expect rate hikes from the Bank of England and European Central Bank due to energy-driven inflation.
Capital Economics’ Thomas Mathews warned that infrastructure damage could keep energy prices elevated and financial assets suppressed even after hostilities end. The dollar rebounded, euro down 0.2% to $1.1594, sterling slipping to $1.34.
Spot gold steadied near $4,400 an ounce after surging from four-month lows below $4,100, driven by shifting rate expectations.