Sawt Falasteen - US, European stocks rise despite latest jump in oil prices

Market gains in US indices moderated somewhat after an early rally prompted by upbeat outlooks from artificial intelligence leader Nvidia and major US airlines, which said strong travel demand has offset the hit from higher jet fuel costs.

The S&P 500 finished up 0.3 percent as markets await a US Federal Reserve decision on Wednesday. Delta Air Lines led the major American carriers with a 6.6 percent gain.

"The market is showing some resilience despite renewed strength in oil prices, but the pullback from earlier highs suggests a degree of caution," said Briefing.com.

"Participants appear reluctant to press bets too aggressively ahead of tomorrow's (Fed) decision, with investors likely looking for clarity on how policymakers are factoring the recent surge in oil prices into their inflation outlook and rate path."

Oil prices powered higher, with international benchmark Brent oil futures jumping 3.2 percent to $103.42 a barrel.

A new drone strike on Tuesday hit the Fujairah oil complex, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports.

Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.

The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.

Rystad Energy estimated that just 12.5 million barrels per day of Middle Eastern oil remains online, down from the 21 million per day pre-war base.

"But the 12.5 million bpd figure is not secure," Rystad said. "If the (Hormuz) situation persists, the drop in departures could start feeding through into additional export losses in the weeks ahead, as producers face growing difficulty moving crude out of the Gulf."

Earlier in Asia, Hong Kong, Seoul and Taipei closed higher, though Tokyo and Shanghai dipped.

Investors are awaiting a slew of central bank decisions this week, with expectations that interest rates will remain unchanged as elevated energy prices threaten to drive up inflation, even if the labor market appears to be softening in the United States.

The Federal Reserve "is in a bind," said eToro US investment analyst Bret Kenwell.

"Slower growth and a softer labor market would normally argue for easing monetary policy. But inflation remains sticky, while surging oil prices add another layer of uncertainty to the outlook," he added.

Australia's central bank hiked its key interest rate Tuesday, pointing to "sharply higher fuel prices."

- Key figures at around 2115 GMT -

Brent North Sea Crude: UP 3.2 percent at $103.42 per barrel

West Texas Intermediate: UP 2.9 percent at $96.21 per barrel

New York - Dow: UP 0.1 percent at 46,993.26 (close)

New York - S&P 500: UP 0.3 percent at 6,716.09 (close)

New York - Nasdaq Composite: UP 0.5 percent at 22,479.53 (close)

London - FTSE 100: UP 0.8 percent at 10,403.60 (close)

Paris - CAC 40: UP 0.5 percent at 7,974.49 (close)

Frankfurt - DAX: UP 0.7 percent at 23,730.92 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 53,700.39 (close)

Hong Kong - Hang Seng Index: UP 0.1 percent at 25,868.54 (close)

Shanghai - Composite: DOWN 0.9 percent at 4,049.91 (close)

Euro/dollar: UP at $1.1536 from $1.1505 on Monday

Pound/dollar: UP at $1.3352 from $1.3320

Dollar/yen: DOWN at 159.05 yen from 159.07 yen

Euro/pound: UP at 86.38 pence from 86.37 pence

burs-jmb/mlm

G.AbuGhazaleh--SF-PST