Overview
- The U.S. Navy seized the Iranian cargo ship Touska in the Gulf of Oman after opening fire Sunday, and Iran called the move armed piracy and vowed to respond.
- Oil prices, which whipsawed through Monday and early Tuesday, climbed again late in Paris trading to about $98 for Brent and $93 for WTI as supply fears returned.
- Paris stocks fell 1.14% on Tuesday after a 1.12% drop Monday, reflecting rising caution as talks to cool the conflict show little progress.
- European government bond yields hovered near recent highs, with German 10‑year debt around 2.99% and France near 3.63%, as traders braced for inflation from higher energy costs.
- Prospects for talks in Pakistan looked weak after Tehran signaled it would not attend and Pakistan said it was still awaiting Iran’s answer, a setback with the Strait of Hormuz—route for about one‑fifth of global oil and gas—still central to price and inflation risks.