U.S. and international oil prices climbed Tuesday after Tehran showed no sign of backing down from its refusal to engage Washington in direct talks over the Strait of Hormuz, leaving the standoff unresolved. Brent crude briefly touched $90 a barrel before pulling back, while West Texas Intermediate futures rose 1.8% to $83.62 a barrel.
Stock futures edged higher despite the oil-driven uncertainty. E-Mini S&P 500 futures gained 0.22%, Nasdaq-100 futures were up 0.46%, and Dow futures added 56 points.
Iran said it is working toward a deal with Oman to reopen the Strait of Hormuz, but Iranian Foreign Minister Abbas Araghchi declared Sunday that resuming talks was out of the question while the U.S. remained in breach of the June memorandum of understanding and had not made Iran whole for those violations, citing the semi-official Tasnim News Agency. President Trump responded Monday with new demands, writing on social media that Iran should pay compensation for people killed in the conflict and protests, according to The Wall Street Journal.
Rising energy prices have renewed investor concerns about inflation. The 10-year Treasury yield climbed above 4.7%, approaching its 2026 high from last month, according to the Journal.
Monday’s U.S. trading volume sank to among the year’s thinnest, with many investors choosing to stay on the sidelines before this week’s closely watched inflation releases. The July consumer price index is due Wednesday, followed by the producer price index on Thursday. Higher oil prices are adding pressure to what is already a delicate moment for the Federal Reserve, which is weighing signs of slowing hiring against the risk of renewed price increases.
Asian markets were mixed overnight. South Korea’s Kospi finished the session 0.73% higher and Australia’s S&P/ASX 200 gained 0.19%, whereas Hong Kong’s Hang Seng slipped 1.03% and mainland China’s CSI 300 lost 0.79%. Japanese markets were closed for a holiday. European indexes including London’s FTSE 100, France’s CAC 40, and Germany’s DAX each opened in negative territory in the early European session.