Oil prices are still on the rise, as fresh attacks on ships raise concerns about disruptions to Middle Eastern fuel supplies, adding to doubts over the prospects of a US-Iran peace deal.
The US and Yemen’s Iran-aligned Houthis have said they endured separate attacks on ships in the strait of Hormuz and the Bab al-Mandeb strait on Tuesday, while Iran’s top security official said the strait of Hormuz would stay closed unless the US accepted Iran’s conditions to end the war, including the release of its frozen assets and an end to other regional conflicts.
Ipek Ozkardeskaya, a senior analyst at Swissquote, said: “Yesterday, the rally in US crude paused for a minute after Pakistan’s defence minister said that they were getting ‘close to some sort of arrangement’, but the relief remained short-lived after Iran added that the strait of Hormuz would remain closed until the conditions it demands from the US are met.
“And the conditions that both parties demand from each other suggest that the problems won’t be solved by tomorrow.”
That has sustained pressure on Brent crude prices, which are near their highest level in a month and hovering just under $90 a barrel.
Companies such as the German travel firm Tui are continuing to count the costs.
Europe’s largest travel company has missed the forecasts for its third-quarter profits, having been hit by higher jet fuel costs and a drop in bookings.
Tui, which runs cruise ships, airlines and hotels, said operating profit was down almost 27% to €234.6m (£200m) compared with last year. That is also far lower than the €274m projected by analysts.
It reaffirms travel companies’ warnings that tourists are thinking twice before going on holiday, given the uncertainty tied to the Iran war, although bosses maintain that customers are still keen to travel.
Today’s key events
• 1.30pm BST: US inflation data for July
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