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GLOBAL MARKETS-Stocks mixed as oil prices rise again after Iran strikes
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GLOBAL MARKETS-Stocks mixed as oil prices rise again after Iran strikes
Mar 17, 2026 3:01 AM

* US stock futures slip after Monday's rebound as oil

prices climb

* Fed, ECB, BOJ, BOE all due to weigh in on economic

outlook this week

* Brent crude above $100 as Trump's call for Hormuz

escorts rebuffed

(Updates throughout for European morning session)

By Harry Robertson and Gregor Stuart Hunter

LONDON/SINGAPORE, March 17 (Reuters) - European stocks

ticked up but U.S. futures dipped on Tuesday as Iran's renewed

attacks on U.S. Gulf allies drove oil prices higher, keeping

investors on edge after a tentative rebound in equities on

Monday and in Asian markets overnight.

Meanwhile, the dollar and U.S. Treasury yields were little

changed as allies rebuffed President Donald Trump's demands to

send warships to escort oil tankers through the key Strait of

Hormuz, and as investors awaited decisions this week from the

world's major central banks.

The pan-European STOXX 600 index slipped in early

trading but was last up 0.3%, while U.S. S&P 500 futures

pointed to a 0.2% fall at the open.

Brent crude oil, the global benchmark, was last up

3.2% at $103.50 a barrel after Iran launched fresh attacks on

the United Arab Emirates on Tuesday.

Operations at the UAE's Shah gas field remained suspended on

Tuesday, while a new attack caused a fire in the key oil export

terminal of Fujairah, highlighting how Tehran is disrupting

energy flows from the region.

Stock markets perked up on Monday as oil prices dipped, on

hopes that shipping flows from the Gulf would improve and as

optimism about artificial intelligence helped boost U.S. tech

companies. The S&P 500 climbed 1%.

Asian shares followed suit overnight, with MSCI's broadest

index of Asia-Pacific shares outside Japan up

1.1%, and South Korea's Kospi up 1.6%.

"U.S. markets pushed higher overnight, but futures are

pointing to a softer start this afternoon, with volatility still

very much in the driver's seat," said Matt Britzman, senior

equity analyst, Hargreaves Lansdown.

After Tuesday's rebound, Brent crude is up more than 40%

since the U.S. and Israeli strikes began, while the S&P 500 is

down around 3%.

CENTRAL BANKS GRAPPLE WITH ENERGY PRICES

The Reserve Bank of Australia voted on Tuesday to hike

interest rates for a second time this year as it grapples with a

renewed bout of inflation, taking its benchmark rate to 4.1%.

It set the tone ahead of the U.S. Federal Reserve on

Wednesday and European Central Bank, Bank of England and Bank of

Japan meetings on Thursday, as they assess the global economic

impact of the Iran war, even though all are expected to stand

pat on policy.

Money market traders now broadly expect just one cut from

the Fed after previously expecting two; that the BoE will likely

remain on hold, after two reductions were formerly anticipated;

and that the ECB will mostly hike rates once or twice after

pricing in the chance of a cut in February.

The Bank for International Settlements on Monday urged

policymakers not to rush reactions to the spike in global energy

prices, calling it a textbook case of when to "look through" a

supply shock.

The yield on the U.S. 10-year Treasury bond was up 1 basis

point at 4.226%, and 26 basis points higher since

the war began. Yields rise as prices fall, and vice versa.

The U.S. dollar index, which measures the currency

against a basket of six peers, was last roughly flat at 99.75

after snapping a four-day streak of gains on Monday.

"We would be surprised if the FOMC (Federal Open Market

Committee) indicated a strong direction on the impact of the

war," said Steve Englander, global head of G10 FX research at

Standard Chartered in New York.

"It has no way of knowing how long the war will last or

whether the biggest response will be on activity or inflation."

The Japanese yen was little changed at 159.09 per

dollar, just shy of the crucial 160 level despite verbal

warnings from the Japanese authorities on Tuesday.

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