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- Too hot by day, Dubai's floodlit beaches are packed at night
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- Fans hail Trump's 'guts' as he returns to site of rally shooting
- Lebanon state media says 'very violent' Israeli strikes hit south Beirut
- Guardians maul Tigers, miracle Mets rally in MLB series openers
- Lebanon state media says Israeli strikes hit south Beirut
- Miami on track for MLS record points after win in Toronto
- Madrid beat Villarreal but Carvajal suffers knee injury
- Madrid beat Villarreal to move level with Liga leaders Barcelona
- Monaco take top spot in Ligue 1 with win at Rennes
- French rugby player on rape charge whistled but 'serene' on return
- Madrid beat Villarreal to level Liga leaders Barca
- Thuram treble fires Inter past Torino and up to second
- 'Fight': defiant Trump jets in to site of rally shooting
- Toddler among 3 dead in migrant Channel crossings
- Mexico City's new mayor sworn in with pledges on water, housing
- Israel on alert ahead of Hamas attack anniversary
- Guardians maul Tigers in MLB playoff series opener
- Macron criticises Israel on Gaza, Lebanon operations
- French rugby player whistled but 'serene' on return amid ongoing rape case
- Kovacic stars as Man City sink Fulham to get title bid back on track
- Retegui hat-trick fires five-star Atalanta to hammering of Genoa
- Heavyweights Australia, England off to World Cup winning starts
- Visiting UN refugee agency chief decries 'terrible crisis' in Lebanon
- Spinners come to party as England defeat Bangladesh at T20 World Cup
- Search continues for missing in deadly Bosnia floods
- Man City sink Fulham to get title bid back on track
- France's Auradou whistled on Pau return in Perpignan loss amid ongoing rape case
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Arsenal hit back in style after Southampton scare
- Thousands march for Palestinians ahead of Oct 7 anniversary
- Hezbollah heir apparent Safieddine out of contact after strikes
- Liverpool stay top of Premier League as Arsenal, Man City win
- In dank Tour of Emilia, Pogacar shines in rainbow jersey
- DR Congo launches mpox vaccination drive, hoping to curb outbreak
- Trump returns to site of failed assassination
- Careless Leverkusen held to Bundesliga draw
- O'Brien's 'superstar' Kyprios posts landmark win on Arc weekend
- Toddler crushed to death in migrant Channel crossing
- Liverpool suffer Alisson injury blow
- Habosi helps Racing beat Vannes before Auradou's playing return
- Thousands march in London in support of Palestinians, 1 year after Oct 7
- Israel readying response to Iran missile attack
- Schutt, Mooney help Australia beat Sri Lanka in Women's T20 World Cup
- Liverpool extend Premier League lead with win at Palace
- Djokovic 'shakes rust off' to make third round of Shanghai Masters
- 'Imperfect' PSG fighting on all fronts - Luis Enrique
- Struggling Pakistan look to thwart adaptable England
- Child 'trampled to death' in asylum seekers' Channel crossing: minister
Oil hits seven-year highs on recovery hopes, unrest
Oil prices hit their highest levels in more than seven years Tuesday, driven in part by hopes of a global economic recovery that would ramp up demand.
Stock markets however headed south, with US Treasury yields surging on expectations the Federal Reserve will have to unveil several interest rate hikes to tackle a worrying spike in inflation, leading the Dow to finish 1.5 percent lower on its first day back after a long holiday weekend.
European crude benchmark Brent North Sea reached $88.13 per barrel, while the US West Texas Intermediate contract hit $85.74 -- the highest levels since October 2014 -- before easing slightly in later trading.
Expectations of Fed tightening continued to support the dollar.
A drone attack on Monday in Abu Dhabi claimed by Yemen's Huthi rebels, which triggered a fuel tank blast that killed three people, also supported prices.
The group warned civilians and foreign firms in the United Arab Emirates to avoid "vital installations," raising concerns about supplies from the crude-rich region.
"The suspected drone attack in Abu Dhabi underscores the ongoing threat against civilian and energy infrastructure in the region amid heightened regional tensions," said Torbjorn Soltvedt at risk intelligence company Verisk Maplecroft.
"Reports of damage to fuel trucks and storage will concern oil market watchers, who are also keeping a close eye on the trajectory of ongoing nuclear talks between the US and Iran," he added.
OANDA analyst Craig Erlam said OPEC nations and other key producers were struggling to meet targets to lift output by 400,000 barrels a month, which added to the upward pressure.
"The evidence suggests it's not that straightforward and the group is missing the targets by a large margin after a period of underinvestment and outages," he noted.
"That should continue to be supportive for oil and increase talk of triple-figure prices."
Hopes for more monetary easing by major consumer China to reinforce its stuttering economy were also seen as a key support for the oil market.
- Eye on earnings -
Following an almost uninterrupted rally since the early days of the pandemic, stock markets are showing signs of levelling out as global finance chiefs shift from economy-boosting largesse to measures aimed at reining in inflation.
Those fears drove global bond yields up on Tuesday, with German bund yields coming close to touching zero percent, their highest level since 2019.
"The move higher also raises the prospect that the European Central Bank won't be able to hold its line of no rate rises this year," said CMC Markets analyst Michael Hewson.
Still, equities are expected to enjoy further gains in 2022 as countries reopen and people grow more confident about travel, assuming concerns ease over the Omicron coronavirus variant.
Analysts are also watching the corporate earnings season that is underway, with hopes that firms can match their stellar performances from last year.
Shares in video game publisher Activision Blizzard, maker of blockbuster titles including "Call of Duty", closed 25.9 percent higher after Microsoft announced a $69 billion buyout.
Shares in Microsoft slid 2.4 percent by the end of trading.
"This is a big step up with Microsoft getting in on the ground floor when it comes to creating as well as overseeing content on its own gaming platform," said Hewson.
Microsoft's Xbox console makes it a major player in the gaming industry, even if it trails far behind Sony's PlayStation.
- Key figures around 2150 GMT -
Brent North Sea crude: UP 1.2 percent at $87.51 per barrel
West Texas Intermediate: UP 1.9 percent at $85.43 per barrel
New York - DOW: DOWN 1.5 percent at 35,368.47 (close)
New York - S&P 500: DOWN 1.8 percent at 4,577.11 (close)
New York - Nasdaq: DOWN 2.6 percent at 14,506.90 (close)
London - FTSE 100: DOWN 0.6 percent at 7,563.55 (close)
Frankfurt - DAX: DOWN 1.0 percent at 15,772.56 (close)
Paris - CAC 40: DOWN 0.9 percent at 7,133.83 (close)
EURO STOXX 50: DOWN 1.0 percent at 4,257.82 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 28,257.25 (close)
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 24,112.78 (close)
Shanghai - Composite: UP 0.8 percent at 3,569.91 (close)
Euro/dollar: DOWN at $1.1325 from $1.1407 late Monday
Pound/dollar: DOWN at $1.3598 from $1.3652
Euro/pound: DOWN at 83.28 pence from 83.55 pence
Dollar/yen: UP at 114.60 yen from 114.58 yen
burs-imm/cs/sst
Ch.Havering--AMWN