Gulf states with strong ties to President Donald Trump are emerging from the war between Israel and Iran with greater regional influence and with some of their longstanding security concerns over Iranian power assuaged.

The price drops mean increases in oil per barrel seen since Israel first attacked Iran's nuclear facilities earlier this month have been reversed.

Canada's main stock index rose to a record high on Tuesday, led by financial and technology shares, as investors cheered a cooling of Middle East tensions and found reassurance in domestic inflation data.