Near the sink, I'd tile the short wall in the corner as well, and the area behind the sink if you're adding a raised wall. For the stove area, I would tile to the bottom of the hood vent or the bottom of the shelves, depending on where those are placed. If you're not going all the way to the ceiling I would not go as high as the pantry. Do you have room to add a narrow cabinet to the left of the sink? Or even a 6" filler piece? The sink looks awkward to use so far into the corner.

Thanks calidesign! I’ve changed the last wall cabinet near the sink to a corner cabinet and will tile the under the cabinet and the bar wall behind the sink. Do you think I should also tile the wall next to the bar (between the sink and the door in the picture)?
I don’t have room to move the sink coz it brings the peninsula too close to the counter on the stove side.

it's always best to wait until the cabs/countertops are in.

This way we can see how it looks in the kitchen, where the ceiling is, how the lighting looks, etc.

hold off, take pics when they're in, and come back.

I don't think it makes sense to tile all the way to the door. Post a photo after you have the wall behind the sink, as that will change that area quite a bit.

Thanks @calidesign and @Beth H. :! I agree that tiling to the door might look very odd. What do you think about the backslash behind the stove? Do you think glass tile will be ok with the high heat or should I get stainless steel just for that part?

you'd have to check w/the manufacturer. depends on the glass. but it should be fine. heat is transferable, so make sure you have cement board as your wall, not drywall or any wood.