Oil Prices Soar on Mideast Tensions, US Stocks Fall

Oil prices rose to a one-week high on Tuesday as concerns over the Middle East situation intensified, while US stocks fell amid growing pessimism about a potential deal to bring stability to the region.

The Strait of Hormuz will remain closed until the US changes its behavior and accepts Iran's conditions to end the war, said the newly appointed secretary of Iran's Supreme National Security Council. The statement came after US President Donald Trump responded to Iranian conditions for a deal with his own proposals, including compensation for those killed in wars, attacks, and protests.

Oil prices rose by 1.4% to settle at $88.91 a barrel for Brent futures, while US crude finished up 1.3% at $83.20. Market analyst Tony Sycamore said the oil market may remain stuck between $75 and $95 a barrel until the situation is resolved.

On Wall Street, the Dow Jones Industrial Average fell 0.3% to 53,791, while the Nasdaq Composite declined 0.6% to 26,445. The US July consumer price report due on Wednesday could have an impact on expectations for September's Federal Reserve meeting, with economists predicting a 'hot print' that would drive up rate expectations.