Gold prices bounced on Tuesday after managing to stay above the key level of $4500. The yellow metal is currently looking to stabilize above the bearish channel’s middle line, targeting resistance levels at $4553 then $4581. On the downside, if the price falls below the daily pivot point of $4510, it may test support levels near $4477 and then $4452.
Global markets remain focused on developments in the Middle East as geopolitical tensions continue to shape investor sentiment. Lebanon has announced a partial ceasefire between Israel and Hezbollah, raising hopes for a reduction in regional hostilities. At the same time, Iranian state media reported that Tehran has halted negotiations with the United States, adding a new layer of uncertainty to diplomatic efforts. Against this backdrop, oil prices remained steady as traders closely monitored the latest geopolitical developments and their potential impact on global energy supplies.
Market Watch
Lebanon announces partial Israel-Hezbollah ceasefire
The Lebanese government announced a partial ceasefire agreement between Israel and Hezbollah, in a move aimed at reducing tensions along the Lebanese-Israeli border after months of escalating violence that has resulted in significant casualties and heightened regional instability.
According to a statement issued by the Lebanese Embassy in Washington, the preliminary agreement stipulates that Israel will halt airstrikes on Beirut’s southern suburbs and other Hezbollah-controlled areas, while Hezbollah will suspend rocket and drone attacks targeting Israeli territory. Lebanese officials also indicated that efforts will continue in Washington to expand the agreement into a broader de-escalation framework.
Despite the announcement, clashes and exchanges of fire were reported in southern Lebanon, with Israel stating that its military operations would continue in certain areas. Hezbollah officials, meanwhile, stressed that any permanent ceasefire would require the withdrawal of Israeli forces from Lebanese territory.
U.S. President Donald Trump stated that both Israel and Hezbollah had agreed to halt mutual attacks. However, ongoing hostilities on the ground have raised questions about the durability of the agreement and whether it can evolve into a comprehensive and lasting ceasefire.
Iranian state media: Tehran halts negotiations with US
Iranian media outlets reported that Tehran has decided to suspend indirect negotiations and message exchanges with the United States through mediators amid escalating regional tensions and the continuation of Israeli military operations in Lebanon.
According to Iran’s Tasnim News Agency, which is affiliated with the Islamic Revolutionary Guard Corps (IRGC), the Iranian negotiating team has halted all communications and discussions conducted through intermediaries, arguing that the ongoing Israeli attacks in Lebanon violate the conditions of de-escalation that had formed a key basis for the talks with Washington.
Reports indicated that Tehran is demanding an end to Israeli military operations in Lebanon and the Gaza Strip, as well as the withdrawal of Israeli forces from areas recently entered, before any diplomatic engagement with the United States can resume.
Meanwhile, U.S. President Donald Trump said he had not received any official notification regarding the suspension of talks, adding that communications between the two sides remain ongoing. He stated that negotiations were proceeding “at a rapid pace,” despite reports suggesting otherwise.
The development comes as global markets closely monitor U.S.-Iran relations, particularly amid concerns over security in the Strait of Hormuz and the potential impact of renewed tensions on global energy supplies and oil prices.
Analysts view Tehran’s decision as a setback for diplomatic efforts aimed at reducing tensions in the Middle East, while significant disagreements remain over security and regional issues.
Oil steadies as markets await geopolitical updates
Oil prices were little changed on Tuesday after posting strong gains in the previous session, as investors closely monitored geopolitical developments in the Middle East and assessed their potential impact on global energy supplies.
Brent crude traded near $95 per barrel, while U.S. West Texas Intermediate (WTI) hovered around $92 per barrel, amid ongoing uncertainty surrounding U.S.-Iran negotiations and the future of shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
Markets received mixed signals in recent hours after Iranian media reported that Tehran had suspended indirect talks with Washington, while U.S. President Donald Trump stated that communications between the two sides were still ongoing. The conflicting reports kept investors cautious, particularly amid concerns that any further escalation could disrupt oil flows from the region.
Traders are also monitoring the security situation in Lebanon following the announcement of a partial ceasefire between Israel and Hezbollah, as well as continued tensions surrounding the Strait of Hormuz, through which a significant share of global oil and gas exports passes.
Analysts believe oil prices are likely to remain highly sensitive to political and military developments in the coming weeks, with geopolitical risks continuing to be the primary driver of market sentiment. Investors are also awaiting U.S. crude inventory data for further clues about the balance between supply and demand in the world’s largest energy-consuming economy.
Looking Ahead
Markets are closely watching the upcoming release of the U.S. JOLTS Job Openings report, which is expected to provide fresh signals on the strength of the American labor market. Investors are particularly focused on whether job demand remains resilient amid ongoing concerns about inflation, interest rates, and the broader economic outlook.