Oil Prices Rise as New U.S. Strikes on Iran Overshadow Peace Talks

Oil markets remained volatile on Tuesday as geopolitical tensions between the U.S. and Iran continued to drive uncertainty. Brent crude rose 2% to around $98 per barrel, while WTI traded near $92 after sharp recent swings.

The move came after the U.S. military confirmed it carried out strikes in southern Iran. At the same time, President Donald Trump said negotiations with Iran were progressing positively but warned military action could resume if talks fail.

Asia-Pacific markets traded mixed on Tuesday as investors reacted to renewed optimism surrounding potential U.S.-Iran peace talks.

South Koreas Kospi surged to a fresh record high above 8,090 after markets reopened from a public holiday, while the small-cap Kosdaq also gained more than 1%.

In Japan, the Nikkei 225 slipped 0.6% after reaching the 65,000 level for the first time on Monday.

Gold prices remained under pressure on Tuesday, trading below the key $4,580 resistance level as investors balanced ongoing geopolitical tensions with expectations for tighter U.S. monetary policy.

Mixed signals surrounding a potential U.S.-Iran peace deal supported demand for the safe-haven U.S. dollar, limiting golds upside. At the same time, renewed concerns over Middle East tensions and disruptions to oil supplies helped crude prices recover, fueling inflation fears and strengthening expectations that the Federal Reserve could maintain a hawkish stance or even consider rate hikes in 2026.