Oil prices are dropping further, and stocks are rallying worldwide Tuesday on hopes that Israel's war with Iran will not damage the global flow of crude, even if a tentative truce seemed to fray under fire in the morning.

The S&P 500 was 0.7% higher in early trading, following up on even bigger gains for stocks across Europe and Asia, after President Donald Trump said late Monday that Israel and Iran had agreed to a "complete and total ceasefire." The Dow Jones Industrial Average was up 289 points, or 0.7%, as of 9:31 a.m. Eastern time, and the Nasdaq composite was 0.9% higher.

President Donald Trump on Monday called for the U.S. and other oil-producing economies to pump more oil as crude prices remain volatile following U.S. strikes on Iranian nuclear facilities.

Trump urged stepped-up production as the White House sharpened its warnings to Iran against closing the Strait of Hormuz, a vital oil and gas shipping lane, in retaliation for the U.S. strikes on Iran's nuclear program.

Major oil producers Russia and Iraq on Monday expressed "concern" over volatility in world energy markets amid the spiraling conflict between Iran and Israel following U.S. attacks on Iranian nuclear sites.

In a phone call between Russian President Vladimir Putin and Iraqi Prime Minister Mohammed Shia al-Sudani, the Kremlin said the two leaders "expressed concern about the emerging risks to global energy markets and emphasized the importance of continuing active cooperation within the OPEC+ format."

The United States' bunker-busting entry into Israel's war with Iran is having only a modest effect on the price of oil and stock markets worldwide Monday, at least for now. The hope is that Iran won't retaliate in a way that disrupts the global flow of crude, which would hurt economies worldwide but also its own.

The S&P 500 was edging down by 0.1% in early trading, coming off a week where stock prices had jumped up and down on worries about the conflict potentially escalating. The Dow Jones Industrial Average was down 37 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.4% lower.

China said on Monday that the international community must do more to prevent fighting between Iran and Israel from impacting the global economy, noting the "Persian Gulf and surrounding waters are important international trade routes".

"China calls on the international community to make greater efforts to promote the de-escalation of the conflict and prevent regional instability from having a greater impact on global economic development," foreign ministry spokesman Guo Jiakun said.

Global sales of personal luxury goods are "slowing down but not collapsing," according to a Bain & Co. consultancy study released Thursday.

Personal luxury goods sales that eroded to 364 billion euros ($419 billion) in 2024 are projected to slide by another 2% to 5% this year, the study said, citing threats of U.S. tariffs and geopolitical tensions triggering economic slowdowns.

The billionaire slated to take over the controlling interest in the Los Angeles Lakers has built a career leading businesses investing in everything from sports franchises to artificial intelligence.

Mark Walter is CEO of the global investment and advisory company Guggenheim Partners, which is estimated to have more than $325 billion in assets. He's also co-founder and CEO of holding company TWG Global.

World shares are mostly higher and crude oil prices have rebounded as investors wait to see if the U.S. will join Israel's war against Iran.

Britain's FTSE 100 was 0.4% higher at 8,829.82 and the CAC-40 in Paris gained 0.6% to 7,595.06. Germany's DAX rose 0.9% at 23,256.98.

Canada's Prime Minister Mark Carney said Thursday he will impose new tariffs on U.S. steel and aluminum imports on July 21 depending the progress of trade talks with U.S. President Donald Trump.

The prime minister of New Zealand stressed the mutual benefits of trade with China in a meeting with Chinese leader Xi Jinping on Friday, while acknowledging their disagreements on geopolitical issues.

Christopher Luxon, on his first visit to China since becoming prime minister in late 2023, flew to Beijing after two days of meetings with officials and business leaders in Shanghai, China's commercial center.