Consumer prices rose 3.4% in May compared with a year earlier, down from the 3.5% of April but still well above the BOE target, with oil price rises threatening to keep inflation higher for longer.

Wall Street opened slightly lower while oil and gold rose as Tuesday marked the fifth day of fighting between Israel and Iran, with the risk of a widening conflict dampening risk appetite in a week also packed with key central bank decisions.

Implied volatilities jumped higher across asset classes last week as Middle East tensions escalated. Click to read.

A surging oil price is likely to trigger a depreciation in Asian currencies, notably the Thai baht, Taiwan dollar and Korean won, according to Barclays Plc.

Stocks lost ground in early trading Tuesday, while oil prices moved higher, as investors monitored developments in the escalating conflict between Israel and Iran and digested disappointing economic data.