ICYMI: US begins returning staff to Middle East embassies after Iran war evacuationsHawkish board member Tamura to represent BOJ at Jackson Hole instead of UedaAsian shares edge higher as markets await Nvidia earnings, US inflation dataGold holds near three month high as markets await US inflation dataAUD higher, Australian CPI beats forecasts as core inflation surprises to the upsideAustralian monthly CPI (July 2026) 3.5 % y/y (vs. 3.2% expected)Preview, today: Fed's favoured inflation gauge lands two days before Warsh's Jackson Hole speechJapan's services inflation accelerates to 3.6pct in July, beating forecastsPBOC sets USD/ CNY mid-point today at 6.7829 (vs. estimate at 6.7166)US weighs further trade escalation after Canada sets retaliatory tariffsJapan July 2026 Services PPI +3.6% y/y (expected 3.2%, prior 3.2%)Preview: Nvidia reports Q2 results today, guidance implies revenue near $91 billionFour regional Fed banks sought discount rate hike ahead of July FOMC holdFed's Barkin says rising US debt will eventually lead to a reckoningBOJ seen hiking to 1.25pct in September as yen weakness accelerates timelineAxios reports - Rubio tells allies US shifting from strikes to sanctions on IranOil: Private survey of inventory shows headline crude oil build vs. draw expectedOil slides $2 on unconfirmed report of US Iran ceasefire, Hormuz reopeninginvestingLive Americas market news wrap: Some late talk of Iran peaceUS major indices close higher. Technology outperformsSummary:Oil fell in post-settlement trade on an unconfirmed RIA report, citing Pakistani and Iranian sources, of a US-Iran ceasefire including free Hormuz navigation, still unconfirmed but continuing to weigh on the sessionAxios reports Secretary of State Rubio has told allies the US is shifting from strikes to sanctions on Iran, citing the naval blockade and Hormuz mine clearance as reducing Tehran's leverageReuters reports the US has begun returning staff to Middle East embassies evacuated during the Iran warFed's Richmond president Barkin told Bloomberg rising US debt will eventually cause a "reckoning," while maintaining his preference for holding rates steady given easing inflation, though he flagged officials may need to hike if price pressures become embeddedA White House official says the Trump administration is weighing further tariffs on Canada after PM Mark Carney's retaliatory tariffs, due to take effect 8 September. The Canadain dollar fell.Australian July CPI beat forecasts, with core inflation particularly firm, bringing an RBA hike at the 28-29 September meeting into play; AUD rose to a 12-week high, with RBA September hike pricing jumping to over 35% from just above 10% the previous dayJapan's Corporate Services Price Index rose 3.6% year on year in July, beating forecasts and reinforcing the case for a near term BOJ rate hikeThe BOJ confirmed Governor Ueda will skip this week's Jackson Hole symposium, with board member Tamura attending in his placeThe PBOC set today's USD/CNY midpoint notably wider than estimates, the largest deviation since 27 FebruaryJapanese and South Korean shares rose ahead of Nvidia's earnings and US PCE data, both due later WednesdayOil fell in post-settlement trade after an unconfirmed report from Russian agency RIA, citing Pakistani and Iranian sources, claimed a US-Iran ceasefire had been agreed including free navigation through the Strait of Hormuz. The report remains uncorroborated by Western wires or Iranian state media, but continued to weigh on prices through the session.The move was reinforced by separate reporting from Axios that Secretary of State Marco Rubio has told allied foreign ministers the US is shifting its approach from military strikes to sanctions on Iran for now, citing the naval blockade and mine clearance operations in the Strait of Hormuz as having reduced Tehran's leverage over global oil flows. Adding to the de-escalatory tone, Reuters reported that the US has begun returning staff to Middle East embassies that were evacuated or downsized during the Iran war, with posts in Lebanon, Israel, Saudi Arabia and Baghdad among those being restaffed.On the US fiscal and rates front, Richmond Fed President Tom Barkin was cited by Bloomberg warning that rising US debt will eventually lead to a reckoning, cautioning that at some point investors could stop buying US debt. Barkin maintained his preference for holding interest rates steady given evidence of easing inflation, while acknowledging that officials may need to raise rates if price pressures become embedded.Trade tensions between the US and Canada also escalated, with a White House official saying the Trump administration is considering further tariffs against Canada following Prime Minister Mark Carney's announcement of retaliatory tariffs, set to take effect from 8 September. The official said President Trump retains a range of tools to resolve the dispute should negotiations fail to resume. The Canadain dollar fell against the USD, although the dollar was stronger more broadly. In Australia, July CPI data came in well above expectations, with core inflation particularly firm, bringing a Reserve Bank of Australia rate hike at the 28-29 September meeting firmly into play. The data raises the risk that inflation remains too high and fails to fall in line with the RBA's own forecasts. Markets responded quickly, sending the Australian dollar to a 12-week high, with pricing for a September RBA hike jumping to more than 35 percent from just above 10 percent the previous day.In Japan, the Corporate Services Price Index rose 3.6 percent year on year in July, beating forecasts and up from a revised 3.4 percent in June, reinforcing signs of broadening inflationary pressure and adding further weight to expectations of a near term Bank of Japan rate hike. Separately, the BOJ confirmed that Governor Kazuo Ueda will not attend this week's Jackson Hole symposium, with board member Naoki Tamura attending in his place.Elsewhere, the People's Bank of China set today's USD/CNY midpoint notably wider than market estimates, the largest such deviation since 27 February this year. Japanese and South Korean shares both rose in early trade, with investors positioning ahead of Nvidia's earnings and the US PCE inflation report, both due later on Wednesday. This article was written by Eamonn Sheridan at investinglive.com.