Iranian officer says renewed war with U.S. seems “inevitable” as Israel, Hezbollah keep fighting

Equities mostly rose Tuesday as investors assessed the chances of a Middle East peace agreement, though mixed signals from President Trump and Israel’s Benjamin Netanyahu over ending Israel’s attacks in Lebanon caused uncertainty.

While Wall Street ended with more tech-led records, Asia’s recent rally stuttered, while attention also turned to the release of U.S. jobs data at the end of the week.

Monday, Iran’s semi-official Tasnim news agency, which is close to the powerful Revolutionary Guard Corps (IRGC) reported said Tehran would keep a block on the Strait of Hormuz and, with its allies, “activate other fronts,” including the Bab al-Mandab strait at the entrance of the Red Sea.

The comments sent oil prices surging as much as 7% Monday before they pared the gains. Both main crude contracts fell on Tuesday.

Despite uncertainty hanging over the crisis, Asian equities mostly advanced after a slow start to the day, helped by another surge in tech firms.

Seoul, which has been at the forefront of the rally this year, reversed a morning retreat to end at another all-time high, while Hong Kong jumped more than 2% thanks to a more than 10% jump in tech giant Tencent. Ecommerce titans Alibaba and JD.com also enjoyed huge gains.

Shanghai, Singapore, Taipei, Manila, Mumbai, Bangkok and Jakarta also rose but there were losses in Tokyo, Sydney and Wellington. London, Paris and Frankfurt climbed at the open.

CBS/AFP