GLOBAL SHARES DIP, OIL EDGES UP AS GLIMMER OF RELIEF OVER IRAN WAR FADES

Global stocks dipped on Tuesday, while oil prices rose in choppy trading, as the relief rally from US President Donald Trump delaying the bombing of Iran’s power grid fizzled out, leaving investors with no clarity over the fate of the Middle East war.

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US Treasury yields pushed higher and the dollar regained lost ground, in a retracement of the rally that swept markets overnight after Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours, citing “productive” talks Tehran.

Much uncertainty remained as the world continues to grapple with an energy shock while Iran denied it was engaged in negotiations with the US Israeli officials said on Tuesday Trump wants a deal with Iran, but any talks were unlikely to be successful at this point.

Oil headed back towards $100 a barrel, having fallen by as much as 15 percent on Monday, after Trump's announcement of the delay.

“The underlying situation is still incredibly fragile or flammable,” said IG market analyst Tony Sycamore.