UK & European markets were broadly steady to firmer on Tuesday, with investors balancing cautious optimism around prospective U.S.-Iran talks against lingering concern over energy supply risks and inflation spillovers. The tone across the region was constructive rather than aggressive, with technology providing support, while parts of the consumer and defensive complex were more mixed. In the UK, the FTSE was comparatively restrained, held back in part by weakness in Associated British Foods after its strategic update.

U.S. markets opened on a relatively composed footing, with investors taking some comfort from the prospect of renewed diplomacy while still treating the broader geopolitical backdrop as unresolved. Corporate earnings helped underpin sentiment, and the technology complex remained supported by fresh enthusiasm around artificial intelligence spending, including a positive read-through for Amazon from its expanded relationship with Anthropic. Healthcare also offered support after upbeat results from UnitedHealth.

Asia-Pacific markets were generally firmer, helped by the same combination of diplomacy hopes and renewed appetite for growth and semiconductor exposure. South Korea remained a focal point as chip-related strength continued to drive leadership, while other regional bourses also benefited from a modest improvement in risk sentiment. Even so, the advance still looked conditional on whether the geopolitical backdrop genuinely de-escalates rather than merely pauses.

Oil prices eased from recent extremes, but the market remains highly sensitive and fundamentally risk-driven. Traders are still pricing in the possibility of disruption around the Strait of Hormuz, yet the prospect of further talks has been enough to temper the most acute supply fears for now. The result is a market that feels less panicked than at the start of the recent spike, but still vulnerable to sharp repricing on any sign that diplomacy falters.

Gold softened slightly, though it continues to trade at historically elevated levels as investors weigh safe-haven demand against the possibility that a diplomatic breakthrough could reduce immediate stress in energy markets. The metal is still drawing support from inflation concerns linked to higher oil prices and from the broader sense that geopolitical risk has not been conclusively removed. In that context, the pullback looks more like consolidation than a full reversal in sentiment.