Oil at $90 as Strait of Hormuz fighting returns

Renewed clashes in the Strait of Hormuz pushed Brent crude futures back above $90 a barrel on Tuesday, rattling global markets and sending the Dow Jones Industrial Average lower. The strait, a narrow waterway between Iran and Oman, is a critical passage for about one-fifth of the world’s oil supply. Traders fear that escalating violence there could disrupt shipments. Brent crude, the international benchmark, rose sharply as investors priced in the risk of supply cuts. The jump in oil prices weighed on airline and shipping stocks, while energy companies gained. The Dow closed down by more than 200 points, as rising fuel costs threatened to slow consumer spending and push inflation higher. Other major indexes also slipped, though losses were modest. Analysts said the market reaction reflects anxiety over a prolonged conflict, not just a single incident. If fighting continues, oil could stay above $90 for weeks, pressuring households and businesses already coping with high prices. No major shipping halt has been reported so far, but insurers are raising premiums for tankers crossing the strait. Some firms are already rerouting vessels, which adds days to delivery times and further raises costs. Investors are now watching for any diplomatic moves or new sanctions that could ease—or worsen—the situation. Until then, oil prices and stock markets are likely to stay volatile.