Japanese shares edged higher at Tuesday's open following a holiday, though investor caution over a potential Middle East accord kept advances in check ahead of key US inflation data.

The Nikkei 225 added a modest 23 points, or 0.04%, to reach 66,994.05.

Brent crude climbed to about $89, even as Pakistan's defense minister suggested Washington and Tehran were nearing an agreement regarding the Strait of Hormuz.

Market focus now shifts to Wednesday's US consumer price index report, which is forecast to show a moderation in energy-driven price pressures after the initial post-war surge.