Investors are largely shrugging off escalations in the Middle East, with many strategists believing the conflict to be contained.

The reaction in Middle East stock markets suggested investors were assuming a benign scenario, even as Iran intensified its missile attacks on Israel.

Markets across the Middle East ended mostly higher on Sunday after the U.S. entered the war between Israel and Iran.

Investors are largely shrugging off escalations in the Middle East, with many strategists believing the conflict to be contained.

Global equities posted muted gains on Tuesday, as investors digested U.S. President Donald Trump's announcement of a ceasefire timeline between Iran and Israel.

Investors are unconcerned about major oil disruptions, reasoning that Iran is unlikely to close the Strait of Hormuz and harm its own economy.