Back to normal? US stocks reclaim pre-war levels; Asian markets gain, India markets shut for Ambedkar Jayanti

US equities ended higher, recouping losses triggered by the conflict. The S&P 500 rose 1 per cent to close at 6,886.24, returning to levels seen before the escalation in late February and sitting just 1.3 per cent below its record high.

The Dow Jones Industrial Average gained 301.68 points, or 0.63 per cent, to settle at 48,218.25. Meanwhile, the Nasdaq Composite advanced 1.23 per cent to 23,183.74.

The rebound reflects a shift in investor positioning, with markets increasingly factoring in a contained geopolitical impact rather than a prolonged global slowdown.

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Oil prices remain elevated but volatile

Crude oil prices continued to react sharply to developments around the conflict. Brent crude rose 4.4 per cent to settle at $99.36 per barrel. This is well above the roughly $70 level seen before the war began.

Prices, after reaching intraday highs close to $104, have since retreated, staying below the $119 levels observed during earlier stages of the conflict. This pullback indicates that, despite ongoing supply worries, the markets are also considering the potential for a diplomatic solution.

Tensions have flared with the announcement of a naval blockade of the Strait of Hormuz by Donald Trump, a crucial chokepoint for international oil shipments.

The blockade's goal is to limit Iran's oil exports and amplify economic pressure. Yet, it simultaneously heightens the risk of a more constrained global supply, given that a substantial volume of the world's crude oil transits through this narrow waterway.

Iran cautioned that the action might interfere with energy transportation through the Persian Gulf and the Gulf of Oman, which could, in turn, drive up prices.

Support for a ceasefire

Even with the situation worsening, investors felt more optimistic, buoyed by the possibility of renewed diplomatic talks. Rumors circulated that Iran might be willing to negotiate with the US, though no official word had been given.

Markets have been swinging between concerns of a prolonged conflict and optimism that both sides have strong incentives to stabilise oil flows and avoid deeper economic damage.

Asian markets follow global cues

Asian markets opened higher on Tuesday, tracking gains on Wall Street. Japan’s Nikkei 225 and South Korea’s Kospi climbed over 2 per cent each.

Australia’s S&P/ASX 200 rose 0.56 per cent, while Hong Kong’s Hang Seng Index futures also indicated a firm start.

Currency markets signal improving risk appetite

The US dollar weakened as investors moved away from safe-haven assets. The dollar index dropped to 98.328, its lowest level in one-and-a-half months. The euro edged up to $1.1764, while the British pound hit a six-week high of $1.3514.

Indian markets shut for Ambedkar Jayanti

Back home, Indian equity markets remained closed on Tuesday on account of Ambedkar Jayanti (April 14, 2026).