Crude oil advanced in volatile trading and equities lost momentum as investors remained wary ahead of President Donald Trump’s deadline for Iran to make a peace deal, with tentative ceasefire signals tempered by the risk of further escalation. Brent rose 1.6% to trade above $111 a barrel after swinging between gains and losses in the run-up to Trump’s Tuesday 8 p.m. Eastern Time deadline. The dollar, which has emerged as the haven of choice during the Iran war, strengthened 0.1%. Global equities — after gaining Monday on ceasefire hopes — fluctuated as uncertainty about the war kept investors on the sidelines. US stock-index futures fell 0.5%. Asian shares trimmed earlier advances to rise 0.3%, led by technology stocks, which are viewed as less exposed to the six-week conflict in the Middle East. Traders are cautious ahead of Trump’s deadline as uncertainty over escalation risks, oil supply disruptions and policy responses limits conviction despite tentative ceasefire signals. Attention remains firmly on the Strait of Hormuz — a key artery for Middle East oil flows — with the US president insisting any deal must ensure uninterrupted transit through the waterway.

BLOOMBERG