Oil prices continue to fall as the US and Iran halt attacks

Oil prices extended their decline on Tuesday as the temporary pause in hostilities between the United States and Iran eased immediate concerns about disruptions to global energy supplies. Brent crude fell 2.1% to $86.53 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 1.7% to $82.19 per barrel.

Although Iran denied reports that it had agreed to a 10-day ceasefire, the reduction in fighting has improved market sentiment. Reports that President Donald Trump postponed plans for a major strike on Iran also helped calm fears, despite his later dismissal of claims that the U.S. was running low on military supplies.

U.S. stock futures were mixed in early Tuesday trading as investors prepared for a busy week of major corporate earnings and the Federal Reserves interest rate decision. S&P 500 futures slipped 0.1%, Nasdaq 100 futures fell 0.5%, while Dow futures edged slightly higher.

Wall Street finished Monday mixed, with the Dow and S&P 500 supported by lower oil prices after the pause in U.S.-Iran hostilities, while the Nasdaq declined as semiconductor stocks came under pressure.

Asian markets traded lower, led by a sharp selloff in South Korea‘s Kospi and declines in Japan’s Nikkei, although Australias ASX 200 posted modest gains.

Investors are focused on earnings from major technology companies including Amazon, Microsoft, Meta, and Apple, with markets watching whether continued AI-related capital spending will support the semiconductor sector.

Attention is also on Wednesdays Federal Reserve meeting, where rates are widely expected to remain unchanged, though investors will look for guidance on the timing of future policy moves. Markets are currently pricing in a potential 25-basis-point rate hike in September.