US military forces launched fresh strikes on Iranian targets on Tuesday, targeting the Islamic Revolutionary Guard Corps (IRGC) at noon ET, according to US Central Command (CENTCOM). The strikes followed recent attempted attacks by the IRGC on commercial shipping in the Strait of Hormuz and on US service members deployed in the region. This military action represents a significant escalation from the previous weekend's hostilities, with the US and Iran trading fire for the first time in over a month. The latest developments come after the S&P 500 slipped 0.4%, the Dow Jones Industrial Average fell 348 points or 0.7%, and the Nasdaq Composite shed 0.3% on Monday, though markets still posted their first monthly gains since May.
Brent crude futures jumped to $94 a barrel, reflecting the escalating tensions around the Strait of Hormuz, as reported by Live Mint. The latest surge builds on earlier gains when Brent crude broke back above $90 per barrel and WTI crude rose to around $86 per barrel. The national average for gasoline in August has been above $4 per gallon every day in August for the first time ever, according to the AAA, making it the most expensive August at the pump on record. The combination of direct military action and shipping disruption risks has pushed oil prices to their highest levels since the initial US-Iran hostilities began, with markets pricing in potential supply disruptions through the strategically vital waterway.
Asian markets are trading with mixed performance as the region weighs the weekend flare-up in US-Iran hostilities. As reported by Live Mint, Japan's Nikkei 225 has slipped 0.24%, while South Korea's Kospi is down by 0.38%. Hong Kong's Hang Seng index is down by nearly 1.20%, while the Aiwan index went up 1.28%. In the Chinese stock market, the Shanghai index fell 0.17%, the DJ Shanghai index lost 0.36%, and the China A50 index dipped 0.37%. Markets were mixed across Europe and Asia, with notable movements in individual stocks including GameStop jumping 4.2% after providing a preliminary second-quarter earnings outlook above year-ago results, while Aon fell 5.8% following its announcement of a $17 billion acquisition.
Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole Economic Symposium are weighing heavily on market sentiment, with gold briefly falling below $4,400 per ounce and Bitcoin retreating toward $78,000. As reported by TradingKey, Warsh reiterated that bringing inflation down to 2% is a firm and unshakeable policy target for the Fed, reinforcing expectations that interest rates will remain higher for longer or even tighten further. The combination of deteriorating Middle East tensions and hawkish Fed policy is prompting investors to reduce allocations to high-risk assets, with commodity markets showing mixed responses to the dual pressures of geopolitical uncertainty and monetary policy expectations.
The Gift Nifty live chart is oscillating around 24,185, around 100 points above yesterday's spot Nifty close of 24,080, according to Live Mint reports. Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, believes the Indian stock market may have a flat-to-negative start on Tuesday, as the Gift Nifty live chart is oscillating above yesterday's spot Nifty close, but below the previous close. Shrikant Chouhan, Head Equity Research at Kotak Securities, expects the short-term market outlook remains weak, with potential for a quick technical pullback if the market trades above 24,000/76,600 levels.
