Global markets opened on Tuesday, navigating a mix of monetary tightening, geopolitical tensions, and rapid advances in the AI space.
Australia’s central bank pushed interest rates higher as inflation risks persist, while oil prices surged amid uncertainty around the US-Iran war.
In technology, Samsung and Nvidia signalled deeper collaboration in AI chip manufacturing.
Meanwhile, geopolitical strains escalated as the United States reportedly pressed for leadership changes in Cuba.
RBA hikes rates to 4.1%
Australia’s central bank raised its benchmark interest rate by 25 basis points to 4.1% on Tuesday.
This is the second straight increase and takes borrowing costs to their highest level since April 2025.
The Reserve Bank of Australia (RBA) said inflation has fallen sharply from its 2022 peak but picked up materially in the second half of 2025 and is expected to remain above its 2%-3% target.
Policymakers also pointed to the Middle East conflict as a fresh inflation risk, with higher oil prices likely to add to price pressures.
Australia’s S&P/ASX 200 edged 0.11% higher after the decision.
Oil jumps on Hormuz tensions
Oil prices rose on Tuesday amid uncertainty around a US-led effort to protect shipping through the Strait of Hormuz.
Brent crude climbed 2.45% to $102 a barrel, while US West Texas Intermediate gained 2.7% to $95.84.
The rally followed comments from Treasury Secretary Scott Bessent that Iranian tankers were being allowed through the strait.
The development comes as Washington was preparing a coalition to escort vessels through the critical chokepoint.
Analysts said conflicting signals from Washington and intensifying fighting were keeping markets nervous.
Samsung, Nvidia deepen AI chip ties
Samsung Electronics showcased Nvidia’s new artificial intelligence inference chip at Nvidia’s GTC developer conference in California.
The move underscores a deeper manufacturing tie-up between the two companies.
Nvidia CEO Jensen Huang said the processor is being made by Samsung using its 4-nanometer process and is based on technology from chip startup Groq.
The announcement highlights Samsung’s efforts to strengthen its position in advanced AI chip manufacturing as competition intensifies.
It also comes as Nvidia pushes harder into inference, the fast-growing segment of AI computing that handles model responses after training.
US demands leadership change in Cuba
The Trump administration has told Cuban officials that meaningful progress in bilateral talks would require President Miguel Díaz-Canel to step aside.
As per the people familiar with the negotiations, the US officials are reportedly seeking a leadership change without dismantling Cuba’s communist system.
The Trump administration is also pressing for the release of political prisoners and the removal of other hardline figures tied to the old Castro order.
The reported demand comes as Washington tightens pressure on Havana through an oil blockade that has deepened the island’s economic and power crisis.
Díaz-Canel recently confirmed talks with the United States without giving many details.
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