Global markets have rallied as oil prices fell below $100 a barrel following comments from President Donald Trump that signalled the US did not want a protracted conflict with Iran.
Brent crude prices fell 4.3 per cent on Tuesday to $94.74 a barrel. On Monday, Brent rose as high as $119.50 a barrel, tearing through markets globally.
The dollar fell 0.3 per cent against key trading partners and yields on US 10-year Treasuries dropped 0.02 percentage points to 4.12 per cent.
Stock markets in Asia, one of the most vulnerable regions to higher energy prices, rose on Tuesday.
South Korea’s Kospi gained 4.9 per cent, Japan’s Topix added 2.1 per cent and Hong Kong’s Hang Seng gained 1.6 per cent. India’s Nifty 50 rose 0.6 per cent.
Futures tracking the Stoxx Europe 600 gained 0.4 per cent.
The S&P 500 closed up 0.8 per cent on Monday but futures for the index were down 0.4 per cent during trading on Tuesday.