Oil prices have increased to their highest levels in more than a week, as hopes for a deal between the US and Iran receded. This follows US President Donald Trump's demand for compensation for damage incurred by the US.
Brent crude futures rose 0.4% to $88.1 a barrel, while US crude futures increased to $82.52 a barrel. These are the highest levels for both global benchmarks since 31 July.
The Strait of Hormuz, a key shipping passage, has been effectively closed for months after the US and Israel began attacking Tehran on 28 February. Iran has been negotiating with Oman regarding its reopening.
Gold eased after reaching its highest level in over two months. Spot gold dipped 0.3% to $4,377 an ounce, having earlier risen to $4,434.84, its highest since 5 June.
Investors are awaiting Wednesday's US inflation data for insights into the US interest rate outlook. Jefferies analyst Mohit Kumar stated that the Federal Reserve or the Bank of England are not expected to hike rates, though the European Central Bank may consider a hike in September.