US sanctions Iran: market shrugs off geopolitical escalation

What happened: On Tuesday, the U.S. expanded sanctions against Iran, targeting the country's oil and financial sectors. Meanwhile, the U.S. Treasury announced plans to use its General Account to fund a bond buyback program, easing pressure on longer-dated Treasury yields. European stocks edged higher, and the U.S. dollar regained strength, while cryptocurrencies extended their rally.

Market impact: Despite geopolitical tensions, European shares and global markets remained calm, with investors focusing more on the Treasury's bond buyback program and less on Iran sanctions. The dollar strengthened, benefiting from safe-haven demand and Treasury yields easing.

What to watch next: Investors await Wednesday's earnings results from Nvidia, a key catalyst for tech sector sentiment. Additionally, market participants will closely monitor any further developments or reactions to the U.S. sanctions against Iran, which could potentially disrupt energy markets.