Dow Jones rises as oil tops $100; Federal Reserve meeting begins

US stocks opened higher on Tuesday, extending gains from the previous session, even as rising oil prices and ongoing tensions in West Asia kept investors cautious. The Dow Jones Industrial Average rose around 0.9% at the open, while the S&P 500 gained about 0.5% and the Nasdaq Composite advanced 0.6%. 

The move comes as oil prices remained elevated amid concerns over supply disruptions linked to the Iran conflict. Brent crude traded above the $100 per barrel mark, while US benchmark WTI hovered in the mid-$90s, after gaining earlier in the session.

At 19:30 IST, crude oil prices remained elevated, with WTI trading at $94.42, up 0.98%, Brent crude at $101.6, rising 1.36%, and Murban crude gaining 4.48% to $111.5, while natural gas edged higher by 1.65% to $3.073.

Crude prices have been volatile in recent days on fears that prolonged tensions could disrupt flows through the Strait of Hormuz, a key global energy route. Fresh comments from US President Donald Trump around efforts to secure shipping in the region also kept oil markets in focus. However, its NATO partners have all rejected Trump's offer to secure the strait. 

Rising energy prices are seen as a key risk for markets, with investors assessing the potential impact on inflation and the broader economic outlook.

Focus is also on the US Federal Reserve, which begins its two-day policy meeting on Tuesday. Markets are largely pricing in no change in interest rates, with commentary from Chair Jerome Powell expected later this week.

Also read: Iran war, oil and sticky inflation: Factors that may put Fed’s rate cut plans on hold

Overall, while equities are seeing some support from recent momentum, geopolitical risks and oil price volatility continue to influence sentiment.