Oil Near $90 as Iran Tensions Hit Travel Giant Tui

Brent crude prices are hovering close to $90 per barrel, as fresh attacks on ships in the Middle East raise fears over fuel supplies and push back hopes for a US-Iran peace deal. The recent rally in oil prices briefly paused on Tuesday after Pakistan’s Defence Minister said the two sides were “close to some sort of arrangement.” But that relief faded quickly when Iran stated that the Strait of Hormuz—a key shipping route for global oil—would stay closed until its conditions are met by Washington. Both sides’ demands remain far apart, meaning a quick resolution is unlikely. The rising fuel costs are already hitting major companies. Travel firm Tui warned that higher oil prices are eating into its profits, adding pressure on an industry still recovering from the pandemic. Investors are now watching for US inflation data for July, due at 1:30pm BST, which could signal how central banks will respond to rising energy costs.