Oil Prices Soar Amid US-Iran Stalemate, Asian Shares Mixed

Global oil prices rose on Tuesday as negotiations between the US and Iran over a peace deal reached an impasse. Brent crude futures increased to $88.00 per barrel, while U.S. crude futures ticked up to $82.45, both reaching their highest levels since July 31.

Tony Sycamore, a market analyst at IG, described the situation as a 'Mexican standoff' and predicted that oil prices would likely stay within the $75-95 range while the US and Iran wait for one another to blink. He added that this stalemate will result in an almost war of attrition.

The rise in fuel costs has increased pressure on the US July consumer price report, which is due on Wednesday. Expectations are for a 0.1% monthly increase in the headline reading and 0.2% for the core measure. A hot print could lead to renewed bets of a Federal Reserve rate hike next month, with odds currently at a coin toss.

MSCI's broadest index of Asia-Pacific shares outside Japan swung between losses and gains but was last up 0.2%. South Korea's Kospi rose 0.3% as the latest escalation in Gulf hostilities kept market sentiment fragile.