Oil prices were trading higher early on Tuesday, as prices lifted as a result of concerns in the Middle East that the United States may reinstate sanctions on Iran. Price increases were moderate, as high production in the U.S. and volatile global markets limited gains.

U.S. West Texas Intermediate (WTI) crude futures were at $62.31 a barrel at 0128 GMT, up 25 cents, or 0.4 percent, from their previous close.

Brent crude futures were at $66.26 per barrel, up 21 cents, or 0.3 percent.

In stocks, Asian shares fell on Tuesday as markets in the U.S. closed the session lower on Monday.

On Wall Street, the S&P 500 lost 1.42 percent and the Nasdaq Composite 1.84 percent, both suffering their worst day in five weeks.

“Investors lightened their positions ahead of the Fed’s policy meeting. The markets are completely split on whether the Fed will project three rate hikes this year or four,” Hiroaki Mino, senior strategist at Mizuho Securities told Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent.

In the Middle East, most markets closed lower on Monday’s trading session, tracking weak global markets.

Dubai’s index was 0.3 percent down as financial and construction stocks weighed on the index. Emaar Properties closed 0.5 percent higher.

Abu Dhabi’s index gained 0.2 percent with support from consumer and telecoms stocks.

Qatar's main stock index rose nearly 1 percent on Monday, as a 2.9 percent surge in heavyweight Industries Qatar and a 1.8 percent rise for Qatar National Bank helped boost the index.

Vodafone Qatar jumped by 9.4 percent to close at 8.63 riyals on buying from retail investors after recent declines.

Saudi Arabia’s index closed 0.2 percent down, as Saudi Telecom lost 2.4 percent and Banque Saudi Fransi dropped 1.8 percent.

Egypt's index gave up initial gains to close 0.6 percent lower, hurt by selling in Telecom Egypt, which dropped 3 percent.

Kuwait’s index fell 0.5 percent, Bahrain’s index lost 0.3 percent, while Oman’s index dropped 1.2 percent.

In currencies, the euro stole the spotlight on Monday as traders revived bets that the European Central Bank would raise interest rates sooner than previously thought.

The strength in the euro weighed on the dollar. The euro was last trading at $1.2341 on Tuesday, after gaining 0.4 percent on Monday.

Gold prices edged down on Tuesday as investors shifted their attention this week to the new Federal Reserve Chair Jerome Powell’s first monetary policy meeting.

Spot gold had fallen 0.1 percent to $1,315.86 per ounce at 0108 GMT.

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