Oil prices climbed higher on Tuesday, with Brent crude pushing above $91 a barrel as hopes for a sustained diplomatic resolution to the conflict involving the US and Iran faded, stoking fresh concerns over potential energy supply disruptions in the Middle East.
Meanwhile, economic data from the United Kingdom pointed to a softening domestic labor market. Regular private-sector pay growth, a closely monitored metric for Bank of England policymakers, eased to 2.8% from 2.9% in the prior reading. Conversely, overall public-sector pay growth remained elevated, largely driven by the timing of recent National Health Service pay settlements.
Additional figures from PAYE payroll data indicated a further contraction in employment, with payrolls falling by 13,000. Economists and central bank officials continue to scan the labor indicators for signs of cooling wage pressures as households navigate ongoing cost-of-living challenges.
Global markets are also looking ahead to a busy data calendar, including August private rents and house prices in the UK, Germany's ZEW economic sentiment index, and US housing starts figures for July.
