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

Oil prices surged on Tuesday as the United States and Iran failed to reach an agreement, with Asian shares experiencing minimal movement due to persistent uncertainty surrounding the global inflation outlook. President Donald Trump proposed his own demands for a peace deal, including compensation for victims of wars, attacks, and protests, which could further hinder the reopening of the Strait of Hormuz.

Brent crude futures climbed to $88.00 per barrel and US crude futures rose to $82.45, both marking the highest levels since July 31. Market analyst Tony Sycamore described the situation as a "Mexican standoff," indicating that the market is waiting to see which party will yield first. The US July consumer price report, scheduled for Wednesday, is expected to show a 0.1% increase in the overall figure and a 0.2% rise in the core measure.

A higher-than-anticipated figure could reignite speculation of a Federal Reserve interest rate increase next month. Trading of US Treasuries in Asia was halted on Tuesday due to a Japanese holiday, but futures fell slightly, suggesting higher yields. Australia's Reserve Bank is set to release its policy decision later on Tuesday and may keep rates steady.

Asia-Pacific shares outside Japan saw mixed results with the MSCI index ending 0.2% higher, while South Korea's Kospi gained 0.3%. Wall Street ended lower on Monday, with Nasdaq futures up 0.28% and S&P 500 futures advancing 0.1%. Euro Stoxx 50 and FTSE futures remained unchanged. Nvidia announced a partnership with six major financial institutions to create compute financing platforms, aiming to raise over $500 billion in third-party capital for AI infrastructure.

The yen weakened to 159 per dollar, and the dollar experienced a minor boost from the renewed oil price rally, keeping the euro from touching a one-month high. Gold prices also rose by 0.5% to $4,409.81 per ounce.