Oil prices rose on Tuesday after U.S. strikes in southern Iran, dimming hopes for a peace deal.
Iran's top negotiator and foreign minister met Qatar's PM in Doha on Monday. However, Washington and Tehran played down chances of an imminent breakthrough.
The dollar regained safe-haven appeal, while stocks were mixed. Investors focus on the Strait of Hormuz reopening.
Japan's Nikkei reported the U.S. and Iran discuss opening the waterway about 30 days after a deal to end hostilities, but details are scant.
Energy prices likely to stay elevated, pressuring policymakers and consumers as inflation picks up. Sri Lanka's central bank hiked policy rate by 100 bps.
BOJ Deputy Governor said Middle East developments will factor into rate-hike timing. Markets now lean toward a 25 bps Fed hike by December.
The Conference Board's U.S. Consumer Confidence Index due later Tuesday, expected to edge down to 92 in May.
