The MSCI All Country World Index rose 0.1% on Tuesday, extending an 11‑day winning streak — its longest in five years — as oil eased on signs talks with Iran could be restarting and eased some geopolitical risk for markets.

Equities creep higher as risk appetite returns

The MSCI All Country World Index climbed 0.1% on Tuesday, extending an 11-day run that marked the gauge's longest winning streak in five years. Investors took comfort from indications that diplomacy could blunt recent Middle East volatility and lift pressure on commodity markets. South Korean equities reached fresh records, and several Asian technology stocks outperformed as traders rotated back into riskier assets.

Futures on the S&P 500 were modestly higher after the underlying index slipped from a record in the previous session. The rebound has come even as some heavyweight US technology names showed mixed moves. Apple Inc. shares fell in late trading after announcing a senior management change, naming John Ternus its next chief executive. Markets treated that as a company-specific development rather than a wider signal for the tech sector.

Sentiment has recovered ground lost during the most turbulent days of the conflict. Financial markets had earlier priced in a longer period of disruption to oil supplies and a higher inflation impulse; that view has been tempered as traders increasingly weigh the chance of a diplomatic resolution alongside the risk that hostilities could flare again.

Oil eases as talks give traders hope

Brent crude slipped 0.6% to about $94.94 a barrel as traders reacted to signs Iran might engage in further negotiations with the US.

Prices had spiked higher in recent sessions as tanker transits through the Strait of Hormuz were curtailed, but the prospect of talks helped send oil lower. Market participants have focused on whether negotiators will be able to reconvene in Pakistan after an initial round in Islamabad produced no agreement. Reports indicated Iran would send a team to the next session, and traders took that as a sign diplomacy hasn't entirely stalled.

Transits through the Strait of Hormuz briefly fell to a trickle when Tehran tightened control, then rose again as the situation oscillated between opening and renewed restrictions. Early on Tuesday, three vessels — two cargo ships and a fuel tanker — were reported attempting transit even as naval blockades remained a feature of the short-term picture. That stop–start pattern has amplified price swings.

Oil is now trading on a mix of immediate transit risk and the potential for a negotiated easing of tensions that would restore flows and push prices lower. For now, markets are betting that diplomacy can at least limit the upside for crude.

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For now, markets are betting diplomacy can limit crude's upside; investors will watch the progress of talks and oil flows for signs the rally can be sustained.

This article was created with AI assistance.