European stocks closed up 0.67%, Brent crude maintained above $100 per barrel

The market continues to focus on developments in the Iran conflict and the Federal Reserve’s two-day policy meeting. U.S. and European stock markets rebounded on Tuesday, with the Dow Jones Industrial Average rising 481 points before nearly erasing all gains. European stocks initially fell slightly but then turned higher, with the pan-European Stoxx 600 index closing up 0.67% at 602 points.

The outlook for a U.S.-led alliance aimed at protecting shipping through the Strait of Hormuz remains uncertain, keeping international oil prices elevated. Global benchmark Brent crude oil surged by 4.76% to $104.98 per barrel. Oil prices staying above $100 per barrel continue to pressure inflation expectations, negatively impacting stock performance.

The UK FTSE 100 closed at 10,403 points, up 0.83% or 85 points; Germany’s DAX rose 0.71% or 166 points to 23,730; France’s CAC 40 increased 0.49% or 38 points to 7,974; Italy’s FTSE MIB gained 1.22% or 539 points to 44,887; Spain’s IBEX 35 advanced 0.93% or 159 points to 17,248.

U.S. Treasury Secretary Janet Yellen previously stated that the U.S. allows Iranian oil tankers to pass through the Strait of Hormuz, but European leaders rejected calls for their countries to intervene, disappointing President Trump. Meanwhile, a new wave of attacks on Middle Eastern energy infrastructure has heightened concerns over supply.

The Federal Reserve continues to face pressure from Trump to cut interest rates, but due to the Iran conflict, traders expect the Fed to keep rates unchanged when it announces its monetary policy decision on Wednesday (early Thursday in Hong Kong time).