Global markets turned lower on Tuesday as oil prices rose again and investors tracked continued fighting involving Iran, Israel, and the United States. Stocks fell in the US and Europe, while bond yields and the dollar moved higher. At the same time, new withdrawal limits at private-credit funds added pressure to market sentiment.

The S&P 500 fell 0.8% as of 11 a.m. New York time, while the NASDAQ 100 dropped 0.5% and the Dow Jones Industrial Average lost 0.7%. In Europe, the Stoxx Europe 600 fell 0.3%, and the MSCI World Index slipped 0.4%. West Texas Intermediate crude rose 4.5% to $92.09 a barrel, and Brent climbed to $103.42 after falling sharply a day earlier.

Oil Rises as Traders Watch the Strait of Hormuz

Oil moved higher as traders focused on the risk of supply disruption in the Strait of Hormuz. Iran started charging transit fees on some commercial vessels using the route, adding fresh concern about energy flows through one of the world’s most important shipping channels.

Matt Maley at Miller Tabak said, “It all comes down to the re-opening of the Strait of Hormuz.” He added that “if we hear that ‘good progress is being made’ in the negotiations at the end of this week, it won’t be enough, if the Strait remains very restricted.” His comments showed that markets are now watching shipping access more closely than political statements.

Helima Croft, head of global commodity strategy at RBC Capital Markets, said, “We are not dealing with single decision-maker dynamics.” She added that “multiple stakeholders have a say in how this war ends, and ships, not soundbites, will likely be what ultimately matters for physical markets.” That view matched the market’s sharp response to overnight attacks and rising oil prices.

Stocks Fall as Energy Costs and War Headlines Lower Risk Appetite

US stocks opened lower after the rebound in oil erased much of Monday’s relief. Energy was the only S&P 500 sector trading in positive territory in early dealing. Investors also reacted to reports that Iran carried out attacks on Israeli cities and US bases in the Middle East, while Israel launched strikes in western and central Iran.

Fawad Razaqzada at Forex.com said, “Traders are hanging on any signals around whether ceasefire talks are even remotely on the table.” He added, “Until there’s something concrete, it’s hard to see risk appetite improving in any meaningful way.” His remarks reflected the market’s focus on every headline tied to the conflict.

Jeffrey Favuzza of Jefferies said fear had increased across equities, pointing to the CNN Fear and Greed Index at 16 and the VIX in the mid-20s. He also noted that the S&P 500 was only about 6% below its all-time high and that the index was seeing a normal pullback rather than a deeper correction.

Private-Credit Concerns Add a Second Layer of Pressure

Investors also faced renewed concern around private credit after Apollo Global Management and Ares Management limited withdrawals from some funds. The moves added to wider concern about liquidity in direct lending, which has grown into a $1.8 trillion market.

Apollo Debt Solutions, a $25 billion business development company, capped withdrawals at 5% of outstanding shares after investors sought to redeem 11.2%. Ares also limited redemptions at its $10.7 billion private-credit fund. Those steps raised questions about whether these products suit investors who may want faster access to cash.

Maley said the issues in private credit “are not receding,” and added that “the risk/reward equation in the marketplace right now is still decidedly weighted towards risk.” Evercore ISI analyst Glenn Schorr said Apollo’s move to “hold the line” at 5% would help avoid extra leverage, cash drawdowns, or forced asset sales.

Corporate Highlights:

• JPMorgan-led banks revised the nearly $15 billion junk-debt sale tied to the leveraged buyout of Electronic Arts.

• Trian Fund Management and General Catalyst raised their cash offer for Janus Henderson Group to $52 a share as they responded to a rival bid from Victory Capital.

• Estée Lauder said it is in talks to buy Puig Brands in a deal that would create a cosmetics company with about $20 billion in annual sales.

• Sumitomo Mitsui Financial Group was reported to have no immediate plan to acquire Jefferies Financial Group.

• Kalshi was reported to be partnering with Fidelity National Information Service on FIS CD Prediction Clearing.

Moreover, Gold, often treated as a defensive asset, fell 0.6% to $4,382.60 an ounce and was on track for a 10th straight daily loss. In currencies, the euro fell 0.3% to $1.1578, the pound dropped 0.4% to $1.3380, and the Japanese yen weakened 0.2% to 158.80 per dollar.

Also Read: Stock Market Today: Sensex Crashes 1,742 Points, Nifty Drops to 22,551 as US-Iran War Enters Week Four