- Stocks stall on Trump u-turn, oil rises -

European stock markets steadied and oil prices jumped on Tuesday as traders turned cautious over the prospect of a negotiated agreement between the United States and Iran to end the Middle East war.

European and US stock markets had rallied Monday after President Donald Trump delayed strikes on Iranian energy sites and hailed "very good" talks with Iran. Asian equities caught up with the strong gains Tuesday but European stock markets failed to build on the previous session's surge.

Iran has denied Trump's claims of advanced peace talks, and the price of Brent - which had slumped Monday - was back above $100 a barrel on Tuesday.

- Eurozone activity slows due to war -

Business activity in the eurozone slowed in March after the war in the Middle East drove energy prices higher and disrupted global supply chains, a closely watched survey showed Tuesday.

The HCOB Flash Eurozone purchasing managers' index (PMI) published by S&P Global, fell to 50.5 from 51.9 in February. A reading above 50 indicates growth, while a figure below 50 shows contraction.

"The flash Eurozone PMI is ringing stagflation alarm bells as the war in the Middle East drives prices sharply higher while stifling growth," Chris Williamson, chief business economist at S&P Global Market Intelligence, said.

- Unusual market activity before Trump statement -

A much higher volume than normal of oil contracts traded 15 minutes before US President Donald Trump pledged to halt strikes on Iranian energy infrastructure, sending prices tumbling, financial media reported Tuesday.

The traders who bet on prices dropping ahead of the announcement would likely have profited from Trump's sudden reversal, prompting some analysts to question whether some market participants had acted on prior information.

- Lufthansa extends flight suspension -

German aviation giant Lufthansa -- which operates Eurowings, Austrian, Swiss and Brussels Airlines and has acquired a stake in Italy's ITA -- said all services across the Middle East were cancelled until the end of April due to the "volatile situation".

In addition, most of its carriers had suspended flights to several destinations, including Tehran, Beirut, Riyadh and Abu Dhabi, until October 24, Europe's biggest airline group said late Monday. Services to Dubai and Tel Aviv were cancelled until May 31.

- Cathay extends flight suspension -

Hong Kong carrier Cathay Pacific said on Tuesday it has extended its flight suspensions to and from Dubai and Riyadh by a month until May 31 because of the war in the Middle East.

- Vietnam to cut domestic flights -

Vietnam's national air carrier will suspend nearly two dozen domestic flights a week starting next month because of limited fuel supplies caused by the Mideast war, the nation's aviation authority said.

Major domestic routes and international flights are being maintained, though Vietnamese airlines are working on adding fuel surcharges on international routes.

- Philippines leans on coal -

The Philippines will "temporarily" be forced to lean even more heavily on coal-fired power plants given the soaring costs of liquified natural gas (LNG), energy secretary Sharon Garin said Tuesday.

"We talked to the generation companies, the coal-powered plants, to check how much they can increase their generation," Garin said, calling it a "temporary measure" that could start as early as April 1.

- Oil disruption 'temporary' -

US Energy Secretary Chris Wright said oil market disruptions were "temporary," speaking at a conference in Houston.

But Mike Wirth, chief executive of the US energy giant Chevron, warned that oil prices had yet to fully factor in fallout from the blockade.

"In particular, Asia is facing some real concerns about supply," Wirth said, citing government measures to conserve stocks.

TotalEnergies chief Patrick Pouyanne meanwhile said he expected "very high" liquefied natural gas prices by the summer if the Strait of Hormuz is not reopened.

burs/gv/yad

CHEVRON

TotalEnergies