Global markets were mostly lower as escalating U.S.-Iran tensions spooked investors.

Wall Street futures were mixed as markets looked to key June inflation figures later this morning.

TSX futures were in the red after major North American markets closed down yesterday.

On Wall Street, big bank earnings season starts with JP Morgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc., Citigroup Inc. and Wells Fargo & Co. Fastenal Co. also reports results today.

“Markets enter Tuesday at an important inflection point as investors balance three competing forces: renewed geopolitical tensions in the Middle East, the start of the second-quarter earnings season, and June U.S. inflation data,” said Bruno Schneller, managing partner at Zurich-based Erlen Capital Management.

“These events are likely to determine whether the recent rally broadens further or becomes more selective,” he added.

Overseas, the pan-European STOXX 600 was down 0.44 per cent in morning trading. Britain’s FTSE 100 fell 0.35 per cent, Germany’s DAX dropped 0.38 per cent and France’s CAC 40 gave back 0.63 per cent.

In Asia, Japan’s Nikkei closed 0.74 per cent higher, while Hong Kong’s Hang Seng rose 0.52 per cent.

Oil prices rose to their highest in four weeks, as the U.S. reimposed a naval blockade of Iran and renewed attacks between Washington and Tehran heightened concerns over energy flows through the Strait of Hormuz.

Brent crude futures were up 4.1 per cent to US$86.72 a barrel, while West Texas Intermediate (WTI) crude gained 3.1 per cent to US$80.55 a barrel.

“Despite signing the memorandum of understanding and having a deal, this did not last for even a few weeks. So that’s the concern the market is trying to price right now,” said ANZ analyst Soni Kumari.

In other commodities, spot gold was up 0.5 per cent to US$4,019.50 an ounce. U.S. gold futures for August delivery advanced 0.5 per cent to US$4,026.20.

The Canadian dollar strengthened against its U.S. counterpart.

The day range on the loonie was 70.62 US cents to 71.02 US cents in early trading. The Canadian dollar was down about 0.66 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.14 per cent to 101.09. The dollar was pegged at $1.4097.

The euro climbed 0.13 per cent to US$1.1398. The British pound rose 0.22 per cent to US$1.3376.

In bonds, the yield on the U.S. 10-year note was last up at 4.621 per cent.

Japan’s industrial production

6 a.m. ET: U.S. NFIB Small Business Economic Trends Survey for June.

8:15 a.m. ET: U.S. ADP Employment (4-week average change) for week of June 27.

8:30 a.m. ET: U.S. CPI for June. The Street is expecting a month-over-month decline of 0.1 per cent and a rise of 3.9 per cent year-over-year.

10 a.m. ET: U.S. Fed’s Monetary Policy Report to the House Financial Services Committee.

With Reuters and The Canadian Press