US-Iran Talks Stall, Oil Prices Rise as Global Markets Face Fresh Inflation Risks

Crude oil prices rose on Tuesday after negotiations between the United States and Iran over a peace agreement and the reopening of the Strait of Hormuz failed to produce a breakthrough. US President Donald Trump has added further demands to the proposed agreement, including compensation from Iran for people killed in wars, attacks and protests, raising concerns that tensions could further complicate efforts to reopen the strategically important waterway. After gaining nearly 5% on Monday, Brent crude futures edged higher to $88.09 per barrel, while US crude futures rose to $82.52, with both reaching their highest levels since July 31. Market analysts expect oil prices to remain volatile in the $75–$95 range as the US-Iran standoff continues. Meanwhile, investor attention has shifted to the upcoming US July Consumer Price Index (CPI) report, with hotter-than-expected inflation potentially reviving expectations of a Federal Reserve rate hike and increasing concerns over stagflation. The Reserve Bank of Australia kept its cash rate unchanged at 4.35% for a second consecutive meeting but warned that further hikes could be considered if needed to contain inflation. Asian markets remained mixed, with South Korea’s KOSPI gaining 1.3%, while Hong Kong’s Hang Seng fell 0.6% and China’s CSI300 edged down 0.05%. US stock futures were modestly higher, while European futures were largely mixed. Meanwhile, Nvidia announced partnerships with six major financial institutions to mobilize more than $500 billion through third-party capital for AI infrastructure, highlighting the massive investment wave in the sector. In currency markets, the Japanese yen remained weak at around 159 per dollar, while the US dollar strengthened slightly alongside higher oil prices. Gold also gained 0.33% to $4,402.52 per ounce, as investors continued to monitor geopolitical tensions and inflation risks.