Global financial markets showed mixed reactions on Tuesday as crude oil prices spiked more than 2% following reports that U.S. President Donald Trump had rejected a ceasefire offer from Iran, heightening fears of supply disruptions. Brent crude traded near $85 per barrel, while West Texas Intermediate (WTI) topped $81, injecting fresh volatility into energy stocks and raising concerns about renewed inflationary pressures.
The Dow Jones Industrial Average barely moved, reflecting a cautious market balancing energy-led inflation worries with anticipation of the critical Consumer Price Index (CPI) report due Wednesday. Economists forecast a 0.3% month-over-month increase in core CPI, which excludes food and energy. A hotter print could dampen hopes for Federal Reserve rate cuts this year, while a softer number may boost risk appetite. The 10-year Treasury yield edged up to around 4.12% as traders adjusted positions.
Bitcoin remained relatively stable near the $81,000 level, acting as a safe harbor amid the mixed cues. Other major tokens—XRP, Solana (SOL), and Ethereum (ETH)—traded unevenly. The energy sector outperformed in the S&P 500, while rate-sensitive utilities and real estate lagged. Market participants closely watch the CPI release for signals on the Fed's path, with geopolitical risks adding an extra layer of uncertainty.
