Asian shares fell back from a seven-week high on Tuesday as oil prices fell more than 2 percent. Previously, oil markets had been increasing from their lows by 30 percent in the last month. On Monday, oil rose more than 5 percent as world stocks saw their biggest rise last week since October, before reversing back overnight.

The reverse in oil prices happened rather abruptly. On Monday, the oil markets rose as much as 7 percent as speculation about failing U.S. shale output strengthen the notion that oil crude prices may be bottoming after their prolonged collapse. However, on Tuesday, the prices retreated on concern that any cuts to U.S. production may be countered by rising output from Iran.

Reuters listed that the prices of U.S crude futures CLC1 fell 2.2 percent to $32.66 a barrel. Similarly, the international benchmark Brent LCOC1 dropped 2.1 percent to below $34 a barrel. 

MSCI index of Asia-Pacific shares, except for Japan, fell by 0.2 percent. The drop happened after the indices rose 0.4 percent to its highest level since the beginning of the year. On the other hand, Japanese stocks fell as the stronger yen hit exporters. Yahoo News noted that besides the price of oil, Asian markets are also facing a renewed fear for the Chinese economy,

Oil is not the only sector suffering from market tumults. Copper, which gained 1.6 percent near its one-month high fell back 0.7 percent, also on Tuesday. The volatility index fell below 20 percent to the lowest closing level since the beginning of the year.

Besides Asian shares, global markets are also taking a hit. According to BusinessDaily, the British pound had its biggest one-day drop in almost six years, as it fell nearly 2 percent. The drop is due to the worry over Britain's decision whether to stay with the European Union or leave. On Monday, the currency hit a seven-year low of $1.4057. The euro also fell on the same day to its lowest in almost three weeks over the similar fear that the Britain's exit from the EU could undermine the European project. On Tuesday, the dollar's index against six major currencies also slipped after reaching its three-week high just a day before.

The retreat of oil prices has reserved back the global markets growth. Especially in Asia, the markets suffered a fall of 0.2 overnight with low volatility index. This happened just weeks after oil prices rose for the first time since the recent months, affected by concern over rising output from Iran which may counter the cuts to U.S. production.