S&P 500 futures slipped on Tuesday, weighed down by higher oil prices, as traders reacted to a hotter-than-expected annual consumer price index reading for April. Futures linked to the broad market index were 0.3% lower, and Nasdaq 100 futures dropped 0.7%. Dow Jones Industrial Average futures hovered around the flatline. In its latest counteroffer, Iran has insisted on war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets, and lifted sanctions. The consumer price index rose 0.6% in April, putting the annual inflation rate at 3.8%, according to the Bureau of Labor Statistics. While monthly move for headline inflation was in line with expectations, economists polled by Dow Jones were calling for a gain of 3.7% from a year earlier. That annual inflation rate was the highest since May 2023. The report showed a rapid increase in headline inflation due to higher energy prices from the Iran war. “Tuesday’s CPI marks the second consecutive reading above 3%, suggesting that inflation is roaring back largely driven by stubbornly high oil prices, which will dominate the inflation story for the rest of the year as the conflict continues to unfold in the Middle East,” said Skyler Weinand, chief investment officer at Regan Capital. Meanwhile, Micron Technology—which led the S&P 500 and Nasdaq Composite to fresh record highs in the previous session—reversed course from its recent gains, falling more than 2% in the pre-market. The stock soared more than 37% last week and jumped more than 6% on Monday amid a memory chip rally. U.S. Treasury yields rose again on Tuesday as investors assessed the implications of a surprisingly hot inflation reading, which showed consumer prices rising to their highest in nearly three years. The 10-year Treasury yield—the benchmark for mortgage lending, auto loans, and credit card debt—increased 2 basis points to 4.433%. The yield on the 2-year Treasury note, which closely tracks short-term Federal Reserve interest rate policy, was almost 3 basis points higher, at 3.975%. The 30-year Treasury bond yield rose by nearly 2 basis points to reach 5.004%. Asia-Pacific markets traded mixed Tuesday as investors shrugged off fresh doubts over the fragile U.S.-Iran ceasefire after President Donald Trump warned the truce was on “massive life support.” Japan’s Nikkei 225 added 0.52% at 62,742.57, while the Topix rose 0.83% at 3,872.90. South Korea’s Kospi pared early losses and fell 2.29% to 7,643.15 after notching a fresh record high on Monday. The small-cap Kosdaq fell 2.32% at 1,179.29. In Australia, the S&P/ASX 200 lost 0.36% at 8,670.70. The Hong Kong Hang Seng index was in choppy trade and fell 0.16% in the last hour of afternoon trade, while the CSI 300 declined 0.08% at 4948.05. India’s Nifty 50 dropped 1.27%. Oil prices rose Tuesday as U.S. President Donald Trump said that the ceasefire with Iran was on life support after rejecting Tehran’s counterproposal to end the war, signaling the conflict in the Middle East could drag on. International benchmark Brent crude futures for July gained 3.2% to $107.58 a barrel as of 7:57 a.m. ET. U.S. West Texas Intermediate futures for June rose 3.3% to $101.37 per barrel. Gold fell from a three-week high hit earlier on Tuesday, as slim hopes ​of a U.S.-Iran ​peace deal drove the dollar ​and oil prices higher, clouding the U.S. interest rate outlook ahead of key inflation data. Spot gold fell 0.8% to $4,698.22 per ounce after climbing to its ⁠highest ‌since April 21 earlier. U.S. gold futures for ⁠June delivery lost 0.5% to $4,706.10.