Oil Jumps as Iran Conflict Flares Again, Stocks Waver

BANGKOK (AP) — Oil prices climbed further Tuesday and Asian shares were mixed after fresh violence in the Iran war raised new doubts about the conflict's future. The renewed fighting came after more than a month with no major clashes. Brent crude rose 0.8% to $91.23 per barrel. It had already gained 2.7% on Monday after the U.S. attacked rocket launchers on an Iranian island, saying they were preparing to lay mines in the Strait of Hormuz. Iran responded by firing missiles at U.S. sites in Jordan, all of which were intercepted. The war has cut traffic through the Strait of Hormuz, a passage that once handled about 20% of the world's oil shipments. Prices remain high after an early surge in the conflict, making everything from gasoline to shipped goods more expensive. U.S. benchmark crude was up 1% at $86.62 per barrel. In Asian trading, Hong Kong's Hang Seng fell 0.9% to 25,332.10. The Shanghai Composite was nearly unchanged at 3,985.93. Tokyo's Nikkei 225 edged 0.2% higher to 66,420.26. South Korea's Kospi added more than 0.2% to 6,835.51. Australia's S&P/ASX 200 slipped 0.1% to 9,066.40. Taiwan's Taiex picked up 0.2%, and India's Sensex gained 0.3%. U.S. futures were 0.1% higher. Wall Street closed August on a downbeat note Monday. The S&P 500 fell 0.3%, the Dow Jones Industrial Average dropped 0.7%, and the Nasdaq composite slipped 0.1%. Losses were broad, with nearly every sector in the S&P 500 finishing lower. Edison International slumped 23.1% and PG&E fell 20.1%, the two steepest declines. That followed reports about potential California wildfire legislation that would allow insurers to sue utilities over related claims. Energy stocks gained. Exxon Mobil rose 2.7%, and Chevron rose 2.1%. Higher energy prices have fueled already stubborn inflation, which remains well above the Federal Reserve's 2% target. That has weighed on household spending and consumer confidence, giving the Fed a more complicated path for its interest rate policy. The yield on the two-year Treasury, which closely tracks expectations about Fed moves, held steady at 4.34%. That is up significantly from about 3.50% at the start of 2026. The yield on the 10-year Treasury rose to 4.75% from 4.73% late Friday. That is back around levels seen two weeks ago when the Trump administration announced it would intervene in the bond market. Higher interest rates can cool inflation but also risk hurting the jobs market. Later this week, the U.S. will report August jobs data. In July, the job market stalled unexpectedly as employers cut 23,000 jobs. Labor Department revisions also slashed another 103,000 jobs from May and June payrolls. In other dealings Tuesday, the U.S. dollar rose to 159.94 Japanese yen from 159.74 yen. The euro slipped to $1.1604 from $1.1619.