Iran War Escalation Sends Oil Prices Soaring Amid Global Uncertainty

Oil prices surged two percent on Tuesday as ongoing violence in the Iran war added to global uncertainty. The conflict has curtailed traffic in the Strait of Hormuz, which once accounted for about 20 percent of the world's oil shipments.

Brent crude climbed to US$92.35 per barrel, while US benchmark crude rose 2.5 percent to US$87.84 per barrel. Higher energy prices have fueled already-high inflation, above the Federal Reserve's two percent target.

Asian markets were mixed, with Hong Kong's Hang Seng falling 0.9 percent and Tokyo's Nikkei 225 giving up early gains. Meanwhile, the Kospi in South Korea added 0.2 percent. In Europe, Germany's DAX lost 1.1 percent to 25,982.28.

The US job market stalled unexpectedly in July, with employers cutting 23,000 jobs and Labor Department revisions slashing another 103,000 jobs from May and June payrolls. The August jobs data will be released later this week, which may impact the Federal Reserve's interest rate policy.