Shares were mixed Tuesday in Europe and Asia after the U.S. military announced what it called “self-defense” operations in southern Iran against missile launch facilities and boats planting mines.
The assaults occurred even as President Donald Trump posted on social media that talks on ending the war were "proceeding nicely."
Germany’s DAX was down 0.7% at 25,214.08 and France’s CAC 40 was 0.9% down at 8,187.07 in early European trading. The FTSE 100 in Britain was up 0.7% at 10,540.40.
S&P 500 and Dow Jones Industrial Average futures gained 0.5 percent.
Oil prices were split with Brent crude climbing but still trading below $100 a barrel while U.S. benchmark crude oil declined.
Monday actions were carried out “to defend our troops from threats emanating from Iranian forces,” the U.S. military stated. It said it had exercised prudence because of the ceasefire with Iran, which had no public comment. There was no instant information about more details, such as specifics about threats from Iran or what it means for negotiations.
Markets have been volatile with the uncertain status of peace talks with Iran and a variety of happenings and comments by Trump.
Markets are acting as if a full Iran breakthrough is in place, even if the toughest portions of the talks are still to be resolved, said Stephen Innes of SPI Asset Management in a statement. Washington keeps saying that there is optimism, but Tehran believes there is no deal on the horizon.
The Nikkei 225 Index in Tokyo, which had climbed to a record closing high of above 65,000 on Monday, fell 0.3%, or 199.4 points, to 64,996.09.
Hong Kong's Hang Seng index edged down to 25,599.45, while the Shanghai Composite index fell 0.2% to 4,145.37.
South Korea’s Kospi gained 2.6% to 8,047.51, clawing back some ground after markets closed Monday for a vacation.
Australia’s S&P/ASX 200 fell 0.4% to 8,657.80.
Benchmark U.S. crude oil fell $3.67 to $92.97 a barrel. Brent crude, the worldwide standard, rose $3.03 to $96.45 a barrel after plunging nearly $5 Monday.
U.S. markets were closed Monday for the Memorial Day vacation. The S&P 500 gained 0.4% on Friday and the Dow industrials jumped 0.6%. The Nasdaq composite was up 0.2%
Global markets rose on Monday after regional leaders in the Middle East indicated the United States was near to a deal with Iran to stop the conflict, reopen the Strait of Hormuz and have Iran give up its stockpile of highly enriched uranium. But when or how the pact could be finalized, and when its many aspects would take effect, is unclear.
Iranian missiles and drones hit Gulf havens and tourism hubs like the United Arab Emirates, and an end to the war would calm anxieties across a region that experienced such attacks.
That would enable international commerce, including an estimated 20% of the world’s oil, to once again flow through the Strait of Hormuz. And it would pave the way for the reconstruction of energy and other infrastructure in the region.
In other early trading Tuesday, the dollar jumped to 159.09 Japanese yen from 158.91 yen. The euro fell to $1.1636 from $1.1645.
