Global markets rally as energy stocks lead gains amid Middle Eastern tensions

WEB DESK: Global equity markets advanced on Tuesday, marking a second consecutive day of gains despite the ongoing conflict in Iran, which continues to exert upward pressure on energy prices.

According to Reuters, investors appeared cautiously optimistic even as they braced for a series of critical policy announcements from major central banks scheduled for later this week.

Oil prices surge on supply constraints

The energy sector remained the primary focal point as US crude rose by 2.28pc to $95.63 per barrel, while Brent crude climbed 2.59pc to reach $102.81. Prices were bolstered by Iranian attacks on the United Arab Emirates, which have heightened fears regarding global supply stability, particularly with the Strait of Hormuz remaining largely impassable.

Although both contracts retraced from earlier peaks of approximately 5pc, they remain up by more than 40pc over the course of the month.

On Wall Street, the S&P 500 energy index led the charge with a 1.4pc increase. Interestingly, despite the burden of rising fuel costs, travel and airline stocks also found upward momentum. Both Delta Air and American Airlines reported robust demand for the spring season, providing a boost to investor sentiment across the broader transport sector.

By the close of play, the Dow Jones Industrial Average had added 137.81 points, or 0.29pc, to reach 47,083.55. The S&P 500 gained 0.40pc to finish at 6,726.24, while the Nasdaq Composite climbed 0.53pc to 22,493.75.

Internationally, MSCI’s all-country stock index rose by 0.63pc, securing its first back-to-back daily gain in three weeks, while the pan-European STOXX 600 closed up 0.67pc, supported largely by the energy and utilities sectors.