Oil Prices Steady After Surge, Asian Shares Mixed Amid Geopolitical Concerns

Oil prices held steady on Tuesday, a day after surging 5%, as markets navigated ongoing uncertainty about the potential reopening of the Strait of Hormuz and its impact on global crude supply. Brent crude remained unchanged at $87.72 a barrel, and U.S. benchmark crude was flat at $82.13 a barrel.

Asian shares experienced a mixed performance. South Korea's Kospi index gained 1.5%, driven by a 4.6% rise in shares of Samsung Electronics. Australia's S&P/ASX 200 rose 0.5% after the Reserve Bank of Australia decided to maintain its benchmark interest rate at 4.35%. However, markets in Hong Kong saw the Hang Seng index lose 0.6%, and the Shanghai Composite index edged 0.1% lower.

In the U.S., stock markets pulled back slightly from recent record highs. The S&P 500 slipped 0.1% on Monday, while the Dow Jones Industrial Average and the Nasdaq composite also dipped 0.1% and 0.3%, respectively. This moderation follows a rally fueled by strong corporate profits, with earnings per share for S&P 500 companies projected to have increased by 50% in the spring compared to the previous year, the strongest growth seen in five years.

Notable corporate movements included Berkshire Hathaway gaining 1.5% after reporting stronger-than-expected profits and announcing investments in stocks under its new CEO, Greg Abel. MarineMax saw a significant jump of 46.1% following an agreement to be acquired for approximately $1.5 billion. Varex Imaging leaped 48.8% on news that Teledyne Technologies would purchase the company for $18.90 per share. Conversely, Intel fell 4.1% on plans to potentially sell $15 billion of its stock to fund investments in artificial intelligence technology, a move expected to dilute shareholder ownership.

Investors are awaiting key inflation data due Wednesday, with economists forecasting a slowdown in the Consumer Price Index to 3.4% in July from 3.5% in June. A moderation in inflation could ease pressure on the Federal Reserve to raise interest rates, which could otherwise slow economic growth and impact investment prices.

In currency markets, the U.S. dollar fell to 159.19 Japanese yen from 159.30 yen. The euro was unchanged at $1.1544. The price of gold, often sought as a hedge against uncertainty, rose 1.2% to $4,472.90 an ounce.