Oil prices rise, Asia stocks drift amid US-Iran stalemate

Oil prices climbed to new highs on Tuesday as talks between the United States and Iran stalled, while Asian equities remained uncertain about the global inflation outlook. President Donald Trump issued his own demands in a deal, proposing Iran pay compensation for casualties in conflicts, attacks and protests, possibly complicating negotiations over the vital Strait of Hormuz.

Analysts suggest the market is in a state of uncertainty, with traders expecting a potential war of attrition before either side yields. Brent crude futures rose to $88 per barrel, and US crude futures reached $82.45, both the highest levels since July 31. The rising fuel costs could influence the US July consumer price report, with expectations of a 0.1% monthly increase in the headline figure and 0.2% for the core measure.

The Federal Reserve may consider raising interest rates if inflation remains strong. MSCI's Asia-Pacific index outside Japan experienced mixed results, closing 0.2% higher, while South Korea's KOSPI gained 0.3%. Global markets remained cautious, with Nasdaq and S&P 500 futures gaining slight ground, while EuroSTOXX 50 and FTSE futures showed minimal movement.

Currency markets saw the yen under pressure, trading near 159 per dollar, and gold prices increased by 0.5% to $4,409.81 an ounce.