GLOBAL MARKETS GAIN AS OIL PRICES EASE AMID FRESH IRAN SANCTIONS

Global stock markets recorded modest gains on Tuesday, while oil prices moved lower as investors assessed the latest economic measures announced by the United States against Iran.

The market movements came after US Treasury Secretary Scott Bessent unveiled a fresh campaign aimed at cutting Iran off from international sources of revenue and increasing pressure on countries and businesses that continue to maintain economic ties with Tehran.

The latest US measures are focused on several sectors of Iran's economy, including digital assets, technology, gold, aviation and shipping. Washington has also warned that countries and companies helping Tehran generate revenue could face secondary sanctions.

Investors have been closely monitoring the developments because of their potential impact on energy supplies and global inflation. Negotiations aimed at reopening the Strait of Hormuz have stalled, while continued tensions in the region have kept oil prices elevated for much of August.

Despite the geopolitical uncertainty, several major Asian markets ended higher. Tokyo, Hong Kong, Shanghai, Taipei, Singapore, Sydney and Wellington recorded gains, while markets in Manila, Mumbai and Bangkok moved in the opposite direction.

European markets also opened slightly higher, with London and Paris recording modest gains. Frankfurt advanced after revised data showed that Germany's economic growth in the second quarter was stronger than initially estimated.

Oil prices, meanwhile, eased after both major crude contracts fell by more than two per cent on Monday following Bessent's comments. Brent crude was down 0.8 per cent at $91.47 per barrel, while West Texas Intermediate fell 0.7 per cent to $84.39 per barrel around 0715 GMT on Tuesday.

Market strategist Stephen Innes said the US campaign appeared designed to increase economic pressure on Tehran while avoiding an immediate escalation that could trigger greater disruption in energy markets.

Attention is also turning to corporate earnings, particularly Nvidia, whose results are being closely watched because of the company's importance to the global artificial intelligence investment boom.

Investors are looking for evidence that heavy spending on artificial intelligence is translating into stronger earnings, with analysts warning that even results above expectations may not be enough to satisfy markets given the high expectations surrounding major technology companies.

Other technology companies, including Salesforce and Marvell, are also expected to release results, adding to the focus on the technology sector.

Meanwhile, investors are watching developments at the annual gathering of central bankers, economists and finance officials in Jackson Hole, Wyoming, where Federal Reserve Chairman Kevin Warsh is expected to provide clues about the direction of US monetary policy.

The combination of geopolitical tensions, energy prices, inflation concerns and corporate earnings is expected to keep global financial markets sensitive to new developments in the coming days.