European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Gold Drops Over 1% as Dollar, Treasury Yields Surge on Fed Rate Hike Bets 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
Add as a preferred source on Google
Oil prices continued to fall in Asian trading on Tuesday after suffering their steepest decline in months, as renewed optimism over U.S.-Iran diplomatic talks reduced concerns about disruptions to Middle East crude supplies. Investors trimmed geopolitical risk premiums following signs that tensions between the two countries may be easing.
Brent crude futures dropped 0.6% to $87.85 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.8% to $81.96. The losses followed a dramatic decline of more than 9% in the previous session, reversing much of last week's rally that briefly pushed Brent above $100 per barrel.
Market sentiment improved after President Donald Trump said Washington and Tehran were engaged in negotiations aimed at ending the conflict. His decision to suspend additional U.S. military strikes and allow diplomatic efforts to continue fueled expectations that a broader regional conflict could be avoided. Iran also paused retaliatory actions, while reports suggested China has been supporting efforts to restart negotiations between both sides.
According to IG senior market analyst Tony Sycamore, the sharp selloff reflected growing confidence that diplomatic channels could reduce the risk of major disruptions to global oil supplies. However, he cautioned that investors remain cautious until there is stronger evidence of a lasting agreement.
Despite improving sentiment, supply concerns have not disappeared. Shipping activity through the Strait of Hormuz and the Bab el-Mandeb Strait remains well below normal, highlighting ongoing risks to global energy transportation. Traders are closely monitoring negotiations involving Iran and Oman aimed at restoring safe navigation through the Strait of Hormuz, a critical route that handles roughly 20% of the world's oil shipments. Any collapse in talks or renewed attacks on regional energy infrastructure could quickly revive the geopolitical premium in crude prices.
Meanwhile, global supply prospects received additional support after Kazakhstan's primary oil export terminal resumed operations following disruptions linked to Ukrainian drone attacks. The restart of tanker loadings at the Caspian Pipeline Consortium terminal near Russia's Novorossiysk port is expected to improve crude exports and further ease supply concerns.
