Oil prices rise and stocks waver as Middle East violence flares, adding to uncertainty

Oil prices continued to rise and Asian stocks saw mixed trading on Tuesday as ongoing violence in the Middle East following the Iran conflict added uncertainty about its future, according to reports from the Associated Press. Shares of online fashion retailer Shein experienced significant drops following their debut trading in Hong Kong on Tuesday, initially falling as much as 10% before settling 5% lower. Brent crude prices increased by 0.8% to $91.23 per barrel, while U.S. benchmark crude rose by 1% to $86.62 per barrel.

The escalation of the Iran war, which has been at a standstill for over a month, has contributed to heightened uncertainty over its outcome. Iran retaliated to the U.S. attack on rocket launchers on an Iranian island by launching missiles at U.S. sites in Jordan, all of which were intercepted. This conflict has led to a reduction in traffic through the Strait of Hormuz, a critical route for about 20% of the world's oil shipments, resulting in sustained high oil prices.

Asian markets were impacted by these developments, with Hong Kong's Hang Seng Index dropping 0.9% to 25,332.10, the Shanghai Composite index remaining nearly unchanged at 3,985.93, Tokyo's Nikkei 225 increasing by 0.2% to 66,420.26, and South Korea's Kospi rising more than 0.2% to 6,835.51. Australia's S&P/ASX 200 declined by 0.1% to 9,066.40, while Taiwan's Taiex rose by 0.2%, and India's Sensex gained 0.3%.

U.S. futures also experienced a slight increase, with the Dow Jones Industrial Average falling 0.7% and the Nasdaq composite slipping 0.1%. The S&P 500 index concluded August on a negative note, declining 0.3%.