Singapore shares closed nearly 2% higher on Tuesday, despite regional losses as investor mood was dampened by Iran's response to the US threats that could impact the peace deal.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 5,204.01 and 5,174.30 throughout the day. It ended the session at 5,204.01, up 11.31 points or 0.2% compared to Monday's close.

On the corporate front, shares of Luminor Financial (SGX:5UA) closed over 2% lower as it extended a loan agreement with controlling shareholder Kwan Chee Seng for another 12 months, with the principal amount reduced to SG$500,000.

Skylink Holdings (SGX:XZB) closed over 2% higher as it proposed to undertake a capital reduction by canceling lost or unrepresented share capital of up to SG$45.8 million.

Meanwhile, shares of Medi Lifestyle (SGX:Z4D) were up nearly 2% higher as it allotted and issued 189.1 million rights shares on July 6.