Global equity markets advanced Tuesday, supported by strength in technology shares as investors prepared for a busy week of corporate earnings that could clarify the outlook for the artificial intelligence sector. Meanwhile, geopolitical developments in the Middle East and ongoing mediation efforts helped contain a rise in oil prices.

Tensions between the United States and Iran escalated anew, while Yemen’s Houthis—aligned with Tehran—announced plans to impose a naval blockade on Saudi Arabia. The blockade raises concerns about further disruptions to energy flows, pushing Brent crude oil prices above $90 per barrel. Nonetheless, optimism remains that diplomatic channels could revive a fragile ceasefire. A senior Iranian official said on Monday that Tehran had received a proposal for a 10-day ceasefire aimed at facilitating a longer-term resolution to the conflict that erupted on February 28. Brent crude futures fluctuated, settling just below $91 a barrel after hitting a one-month high the previous day.

David Morrison, senior market analyst at Trade Nation, described the ceasefire signals as a positive sign that bilateral talks remain possible, though he cautioned that the outcome remains uncertain.

Technology stocks underpinned gains across global markets. Europe’s STOXX 600 index held steady aided by tech sector strength, while U.S. futures benchmarked to the Nasdaq Composite climbed 1.3 percent. Semiconductor companies such as Micron Technology and Marvell reported premarket price jumps near 6 percent. The technology sector’s recent volatility has been influenced by high earnings expectations and valuation concerns, especially after strong results from Asian chipmakers Samsung Electronics and Taiwan Semiconductor Manufacturing Company failed to fully assuage investor caution.

Attention now turns to upcoming earnings reports from major companies including Alphabet and Intel, which will offer insight into AI-related growth prospects and the broader impact of geopolitical risks on corporate performance.

Economic data and central bank policy also remained in focus amid market volatility. Treasury yields retreated slightly after a recent surge fueled by concerns over rising inflation linked to geopolitical tensions. The U.S. two-year note yield edged down one basis point to 4.2 percent following a sharp increase the previous day. Market pricing suggests investors anticipate at least one Federal Reserve rate hike this year, with a roughly 20 percent chance of a second.

Currency markets showed the U.S. dollar near one-week highs against a basket of major currencies. The euro stood at $1.142, while the Japanese yen remained near 40-year lows at 162.74 per dollar, prompting speculation about possible intervention by Tokyo. The British pound was the weakest major currency, as investors awaited additional details on fiscal policies following the surprise appointment of John Healey as the United Kingdom’s new finance minister.

Trade developments also attracted attention after President Donald Trump announced new tariffs on approximately $20 billion of Canadian imports, with reports suggesting further duties could be imposed on other countries. Analysts expressed skepticism that the measures would be as severe as some of the initial threats indicated.

Overall, UBS analysts noted that while near-term volatility may increase due to ongoing geopolitical and economic risks, the broader macroeconomic and earnings environment remains supportive of global equities.