Oil prices moved little on Tuesday after the United States and Iran prepared for further talks after a spurt of hostilities had underscored the uncertainty surrounding efforts to secure a lasting peace.
Both Iran and the United States have confirmed they are sending representatives to Doha, the capital of Qatar, on Tuesday. It was unclear if the two sides would meet directly. Shipping traffic through the Strait of Hormuz, disrupted for months, bounced back on Monday after many shipowners held back over the weekend in the face of tit-for-tat strikes by Iran and the United States.
Brent crude, which rallied last week after an escalation in hostilities, has since retreated to near prewar levels. But the war’s ripple effects remain visible in the currency market.
In Japan, a major importer of oil and gas from the Middle East, the yen fell to its weakest level against the U.S. dollar in nearly 40 years as higher energy costs have weighed on the currency and stoked inflation concerns. On Tuesday, the yen traded at about 162 to the dollar, a level not seen since 1986.
Oil holds steady.
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The price of Brent crude, the global benchmark for oil, was down slightly on Tuesday to about $74 a barrel for September delivery, the most actively traded contract.
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West Texas Intermediate crude, the U.S. benchmark, also moved between small gains and losses, hovering around $71 a barrel for August delivery, the most popular contract.
Stocks gain.
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Futures on the S&P 500 pointed to a small increase when stocks resume trading in the United States on Tuesday.
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In Europe, the Stoxx 600, a broad index that tracks the region’s largest companies, rose about half a percent.
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Stocks in Asia, where countries import vast quantities of oil and gas, were mostly higher. South Korea’s benchmark KOSPI index and Japan’s Nikkei 225 rose nearly 1 percent, while Hong Kong’s Hang Seng fell 0.6 percent.
Gasoline prices slide.
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Gas prices fell again on Tuesday, dropping to a national average of $3.85 a gallon, according to the AAA motor club. Still, gas prices have risen 30 percent since the war began.
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Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
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The average price of diesel fell by a penny to $4.85 on Tuesday, up 29 percent since the start of the war.
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