Asian stocks rise as Mideast mediation takes oil lower

Asian stocks gained on Tuesday as mediation efforts in the Middle East pushed oil prices away from a one-month high, while investors braced for a slate of corporate earnings that will test an under pressure AI trade.

Yemen's Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia, a move that could further disrupt energy supplies, amid attacks between the U.S. and Iran, even as efforts were being made to revive a fragile ceasefire.

Brent crude futures LCOc1 eased 0.38% to $88.88 per barrel in early trading on Tuesday as investors latched on to hopes of a resolution. Brent hit its highest since mid-June at $91.42 a barrel in the previous session.

Escalating U.S.-Iran tensions have also brought back inflationary worries and pushed Treasury yields higher. The 2-year note yield, which typically moves in step with Federal Reserve interest-rate expectations, was at 4.206% in Asian hours after gaining 4 basis points on Monday.