Volkswacht Bodensee - Oil, stocks rise as Trump's Iran deadline looms

European stock markets climbed around midday as trading in the region resumed after the Easter break, and Asian equity indices closed mostly with slight gains.

Trump has warned Tehran that unless it allows free passage through the strait by midnight GMT on Tuesday, the United States will unleash what he called the "complete demolition" of Iran's critical infrastructure.

Iran has effectively blocked the waterway since the start of the war on February 28, driving up global oil and gas prices.

Around one‑fifth of the world's oil normally flows through the strait.

"Global markets are bracing for a critical day as President Trump's looming deadline keeps investors on edge, with sentiment holding up better than you might expect given the risk of escalation," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

However, Tuesday "has the potential to be one of the most volatile trading sessions since the conflict began, with any headlines likely to drive meaningful swings across global markets", he added.

Iran showed no sign of backing down as the deadline approached, with its army dismissing Trump's "arrogant rhetoric and baseless threats", saying it would not hinder operations against US and Israeli forces more than five weeks into the war.

"Financial markets are oscillating in a narrow, uneasy range as traders sized up the countdown to Donald Trump's Iran deadline," said Stephen Innes at SPI Asset Management.

"Tentative ceasefire optics (were) offering brief relief but never fully offsetting the lingering risk of escalation," he added.

The hit to fuel supplies from the Middle East has forced governments around the world to unveil economic support measures amid fears of another spike in inflation.

On Tuesday, the Philippines said its inflation jumped to a forecast-topping 4.1 percent in March, the highest level in nearly two years.

US figures last week showed that growth in the country's services activity cooled last month as companies monitored the higher energy prices and braced for supply chain disruptions.

Away from the war, shares in Samsung Electronics rallied around one percent after the technology giant estimated that first-quarter profit soared 755 percent to an all-time high of $38 billion on strong sales of chips crucial for artificial intelligence.

- Key figures at around 1030 GMT -

Brent North Sea Crude: UP 0.2 percent at $110.00 a barrel

West Texas Intermediate: UP 1.1 percent at $113.68 a barrel

London - FTSE 100: UP 0.1 percent at 10,449.59 points

Paris - CAC 40: UP 0.8 percent at 8,026.72

Frankfurt - DAX: UP 0.3 percent at 23,236.09

Tokyo - Nikkei 225: FLAT at 53,429.56 (close)

Shanghai - Composite: UP 0.3 percent at 3,890.16 (close)

Hong Kong - Hang Seng Index: Closed for holiday

New York - Dow: UP 0.4 percent at 46,669.88 (close)

Euro/dollar: UP at $1.1558 from $1.1543 on Monday

Pound/dollar: UP at $1.3252 from $1.3236

Dollar/yen: UP at 159.69 yen from 159.68 yen

Euro/pound: DOWN at 87.21 pence from 87.27 pence

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D.Bachmann--VB