Closing summary
Crude oil prices have fallen a lot today, with Brent crude sinking 3% to $100.79 a barrel, down $3.14 a barrel.
Wall Street has opened higher, with the tech-heavy Nasdaq up 1%, as expected, amid new optimism around artificial intelligence and trade, after US and Chinese officials held “constructive” talks in New York, according to both sides. They came ahead of a summit n Thursday between US president Donald Trump and Chinese president Xi Jinping in Washington.
European stock markets have bounced between 0.6% (UK) and 1.4% (Italy), while government bond yields have retreated from Friday’s highs, as lower oil prices raised hopes of less inflationary pressures.
Our main story: Flights have been disrupted in parts of the UK after National Air Traffic Services was hit by its second technical issue in a fortnight.
A number of departing and arriving flights were severely delayed and dozens cancelled on Monday with disruption affecting Scotland, Northern Ireland and northern England.
The fault was reported to have occurred at Nats’s second control centre, at Prestwick in Scotland and fixed by about 10.30am.
Airlines including British Airways and easyJet reported immediate cancellations. A total of 35 flights have so far been cancelled across UK airports, according to the analysts Cirium.
The failure came less than two weeks after a major incident at Nats control centre in England disrupted travel for hundreds of thousands of passengers, and only three days after the release of an initial report into that incident by Nats promising to “continually improve the critical service we provide”.
A Nats spokesperson said:
The issue in our Prestwick centre is now fixed. We are working with airports and airlines to safely lift air traffic regulations as quickly as we can to minimise any further disruption. Passengers should still check the status of their flight with their airline. We apologise for the disruption.
Jason Geall, executive Vice President, global SME at American Express Global Business Travel, said:
The UK air traffic control disruption is the latest reminder that disruption is the new normal in travel. Our data shows disruption alerts have surged 300% over the past three years, while the number of impacted travelers has risen 600%.
While leisure travelers get in a queue, business travellers have help at their fingertips - a combination of smart technology and real people ready to step in. That’s the difference a modern managed travel programme makes when plans fall apart.
Thank you for reading. We’ll be back tomorrow. Take care! – JK
Key event
Labour has been warned its “skills revolution” to tackle youth unemployment risks failure, after its flagship apprenticeship scheme enrolled only 160 young people in its first eight months, our economics correspondent Richard Partington reports.
The shortfall, highlighted in a report by the Fabian Society, leaves the government well off track of achieving its ambition of 30,000 “foundation apprenticeship” starts by the end of this parliament.
As part of plans to tackle the nearly 1 million 16- to 24-year-olds not in employment, education or training (Neet), Labour announced in May last year what it called “radical skills reforms”, including the proposals for foundation apprenticeships.
These posts are paid jobs for young adults with attached training for a minimum of eight months. However, official figures show there have been only 160 such starts between August 2025 and April this year.
About 308,000 people have enrolled into an apprenticeship of any kind in England in the academic year so far, according to the official figures, an increase of 9% from the same period a year earlier. More than half of all apprenticeships are taken up by over-25s, while under-19s accounted for a fifth of all starts.
We’d like to hear from employers who have taken on apprentices. What has your experience been like? Have apprentices benefited your organisation? What have been the biggest challenges? What changes or government support would encourage you to offer more apprenticeship opportunities?
If you’ve decided not to recruit apprentices or would like to take on more than you currently do, we’d also like to hear why. What barriers have you faced? Are funding, costs, administration, training requirements or finding suitable candidates making it difficult?
Novo Nordisk shares slide; has shed 13,000 jobs in past year
Novo Nordisk shares fell sharply as the Wegovy maker’s boss set out turnaround plans and faced tough questions from analysts over its pricing power and dealmaking strategy ahead of looming patent expiries.
The Danish company’s share price is still down 5.2% in Copenhagen this afternoon.
The success of its Wegovy and Ozempict shots made it Europe’s most valuable company in 2024, but since then the shares have plummeted, as Novo lost market share to US rival Eli Lilly, the maker of diabetes medicine Mounjaro and obesity drug Zepbound.
Novo intends to launch more than five blockbuster drugs by 2030 and deliver more than 150 billion Danish crowns (£17.2bn) in annual sales in 2035, chief executive Mike Doustdar said at the drugmaker’s investor day in London.
The company is scrambling to reassure markets that it can navigate patent expiries for semaglutide — the active ingredient in its anti-obesity drug Wegovy and diabetes medicine Ozempic — in the early 2030s. This means that generic drugmakers can make cheaper versions of the blockbuster drugs.
Novo launched a pill verson of Wegovy in the US at the start of the year, which has been very popular, and went on sale in the UK at online and highstreet pharmacies on 6 July.
Evan Seigerman, analyst at BMO Capital Markets, said Novo’s plans “may be underwhelming for investors” as the 3.6% revenue growth was already priced in by the market, leaving the “burden of proof” on management to demonstrate execution.
When Doustdar took the helm about a year ago, he announced 9,000 job cuts and other cost cutting measures, including 5,000 job losses in its home country of Denmark, out of a workforce of 78400. The staff departures have reached 13,000 in total over the past year, the drugmaker said today.
He said the company had the financial firepower to do larger acquisitions rather than just small bolt-ton deals, but would focus on the “quality of the deal” rather than the size.
Doustdar said Novo would become “a larger and more diversified company by 2035”. It intends to launch CagriSema, a next-generation obesity drug, next year.
The ABTA, the trade association for UK travel agents, tour operators and the wider travel industry, has expressed its frustration about the latest travel disruption caused by an air traffic control failure.
It asked the government to consider whether National Air Traffic Services, which is partly state-owned, “should be made to compensate the wider industry for such events”.
Luke Petherbridge, ABTA’s director of public affairs, said:
This is the second Nats incident to cause disruption in the last fortnight, and fourth in recent years. It’s simply not good enough. The industry and travelling public will want answers – not only on what has gone wrong, but critically how the system is going to be made more resilient to avoid future outages.
These incidents cause inconvenience to travellers and significant financial costs for airlines and the wider travel industry, including additional work and costs for ABTA’s tour operator and travel agent members.
As these Nats issues are entirely outside of travel companies’ control, the government should seriously consider whether Nats should be made to compensate the wider industry for such events.
Fears over interest rate rise and jobs send UK consumer confidence to three-year low
Fears of a steep rise in mortgage payments and increasing job insecurity have sent UK consumer confidence tumbling to a three-month low, according to a leading survey.
In a blow to John Healey before next month’s budget, the S&P Global consumer sentiment index dropped to 42.7 in September from 42.9 in August, indicating “a notable strain on financial confidence across UK households”.
The chancellor could announce tax rises in his first budget to offset the rising cost of government borrowing, which has soared in response to the conflict in the Middle East.
S&P Global said consumers were concerned about the likelihood of an increase in interest rates by the Bank of England. More than 50% of 1,500 respondents said they expected a rise in the cost of borrowing over the next year.
Fixed-rate mortgage costs have already jumped to multi-year highs in the UK, while the threat of artificial intelligence and caution among employers about hiring new staff sent consumer confidence in the jobs market plunging to its lowest level in three-and-a-half years.
The average two-year fixed residential mortgage rate rose to 5.88% on Monday, its highest since 16 April and up from 5.84% last Friday, while the average five-year is at its highest since October 2023, at 5.92%, up from 5.88%, data from Moneyfacts showed.
The rise in mortgage costs is expected to add about £150 to monthly mortgage payments, based on a typical loan of £250,000 over 25 years, since the start of March 2026.
Official figures have shown that the average direct debit to cover monthly mortgage costs has risen over the past four years from about £600 to £900.
Maryam Baluch, an economist at S&P Global Market Intelligence, said a downbeat mood was spreading across UK households
as improved sentiment surrounding the new government is eroded by renewed worries over energy prices, the cost of living and job prospects.
Against a backdrop of rising volatility in energy markets linked to tensions in the Middle East, households increasingly reported difficulties accessing credit, suggesting that expectations of tighter monetary conditions are beginning to feed through to borrowing conditions. Together, these factors point to cautiousness about both financial prospects and pose some downside risks to the broader economic outlook.
Scottish first minister says Nats flight disruption is 'very regrettable'
Disruption caused by an issue with air traffic control systems is “very regrettable”, Scottish first minister John Swinney has said.
Speaking to the Press Association during an unrelated visit to Edinburgh airport, the first minister said:
It’s very regrettable that there’s been an issue with the air traffic control system today and that members of the public have experienced disruption as a result.
I’m glad the issues are now resolved and that flights are able to take their normal course, but it demonstrates of all organisations, particularly the air traffic control system, having resilience, being able to withstand issues in the systems, so that people can rely on the services that are being provided.
So, we’ll engage with the national air traffic control service to ensure that these issues are addressed and that the resilience is necessary for these systems is available at all times.
Here are a couple of pics from affected airports.
On the air traffic control issue in parts of the UK, the prime minister’s spokesperson acknowledged that it is “deeply frustrating” for passengers, reports our political correspondent Aletha Adu.
There’s a review that is ongoing, and the transport secretary has been clear that we need to urgently understand why the issue wasn’t discovered and fixed before it caused chaos.
Engineers have fixed the problem, and systems are resuming. But we recognise this is deeply frustrating for passengers, particularly after a recent incident, and it’s crucial that our national infrastructure is fit for purpose now and in the future. And we’ll make sure the aviation sector is as resilient as possible, so passengers can get to where they need to be.
Here’s a round-up of our main stories today:
Airbus to hire up to 900 workers in north Wales
Airbus is expected to hire as many as 900 more workers in north Wales to build its long-range A321 jet, as the aircraft maker invests £150m to ramp up jet production.
The company has a backlog of more than 5,000 of the planes, and will make an initial 480 new hires at its wing production centre in Broughton to help meet soaring demand.
Airbus is understood to be planning a similar number of hires next year at the group of factories, which have about 6,000 people working there.
The move will include restarting production at its West Factory, which used to make the wings for its double-decker A380 jet, but was converted into a warehouse after the company made 1,700 people redundant across its UK sites during the pandemic.
The West Factory will be retooled to build the new aircraft which can fly 240 passengers from the UK to the east coast of the US.
Jerome Blandin, head of Airbus Wing, said:
Investing in our capacity strengthens our industrial footprint, creates high value jobs that support the wider UK aerospace sector and ensures we remain competitive in the years to come.
The investment comes after Airbus said it would also expand a wing factory in Belfast over the next few years to help it build more of its smaller A220 planes.
Updated
UK car industry warns locking UK out of 'Made in Europe' would be 'own goal'
Locking the UK out of a new EU scheme to protect industries from Chinese competition would be an “own goal” and risk up to 250,000 jobs in the bloc, the British car industry has warned.
Most of those jobs, 69,000, would be jeopardised in Germany, France and Spain but also in central and Eastern Europe, according to a new study by Oxford Economics commissioned by the Society of Motor Manufacturers and Traders (SMMT).
SMMT’s arguments comes days after the chancellor, John Healy, urged EU finance ministers to include the UK in its definition of Made in Europe legislation.
They fear if UK industry is locked out then EU manufacturers may no longer buy British parts for assembly lines.
The government is also warning that it won’t commit to a second EU-UK summit unless Made in Europe is discussed amid fears over opposition in France to including Britain and other countries such as Japan who are warning that their EU bases should be included.
Mike Hawes, head of SMMT, said:
The EU is rightly focused on strengthening its industrial base, but the UK remains fundamental to Europe’s automotive ecosystem and is therefore essential to that ambition. Excluding the UK from ‘Made in Europe’ would be an own goal, weakening competitiveness, reducing scale and limiting consumer choice.
Updated
Ryanair calls on Nats CEO to 'resign immediately' or be sacked
Ryanair has stepped up calls on the Nats chief executive Martin Rolfe to resign immediately, or for transport secretary Heidi Alexander to sack him.
This latest Nats failure which is affecting its Prestwick control centre is disrupting flights operating to and from Dublin, Edinburgh, Newcastle, Manchester and a range of airports across Scotland, Northern England, and Ireland.
So far, more than 25,000 Ryanair passengers are expected to be affected, with more than 140 Ryanair flights delayed and delays exceeding three hours.
This latest system failure comes just days after Nats published its preliminary report into the 8 September failure.
Ryanair said:
Today’s disruption raises serious questions about Nats’ operational resilience and why, after repeated system failures, there is still no effective back-up system capable of preventing widespread passenger disruption.
The report confirmed that the permanent software fix identified following the 8 September failure had not yet been implemented and remained under testing.
Ryanair’s chief operations officer, Neal McMahon, said:
Just three days after NATS assured airlines and passengers that it had introduced a robust ‘mitigation plans’, its flight data processing system has failed again. More than 25,000 Ryanair passengers have already suffered disruption, with over 140 Ryanair flights delayed, yet NATS still cannot tell passengers when this disruption will end.
Martin Rolfe’s report claimed that another failure was ‘unlikely’ and that NATS could recover more quickly if one occurred. Those claims have been exposed as completely worthless. Just three days later, passengers are once again suffering lengthy delays because Nats has failed to deliver either a reliable system or an effective back-up.
After the August 2023 collapse, Martin Rolfe assured parliament that it was a ‘once-in-a-lifetime event’. Then Nats collapsed again on 8 September, disrupting more than 2,000 flights. Now, just 13 days later, the same flight data processing system has failed once more. How many times must UK passengers suffer disruption before Martin Rolfe is replaced by somebody competent?
Another review, another report and another round of empty promises will not fix NATS. Martin Rolfe has presided over repeated system failures, repeated passenger disruption and repeated failures to deliver an effective back-up system. Enough is enough.
Martin Rolfe should resign today. If he will not, then Transport Secretary Heidi Alexander should fire him and appoint somebody capable of delivering the resilient ATC service that UK passengers and airlines deserve.
Here’s our full story on the flight cancellations and delays in parts of the UK, caused by a technical issue at National Air Traffic Services (Nats)’ second control centre, at Prestwick in Scotland.
It’s the second time within a fortnight that a technical problem in air traffic control has disrupted flights, although this time the impact on passengers appears to be more limited. The issue has been fixed, according to the UK’s transport secretary, Heidi Alexander.
Bitcoin soars through $80,000 to seven-month high
Bitcoin has jumped through $80,000 today, hitting the highest levels since May.
The world’s best-known cryptocurrency hit $84,721 this morning.
Chris Beauchamp, chief market analyst at investing and trading platform IG, said:
It has been months since bitcoin has seen the world above $80,000, but it has finally managed to breach the May highs in early trading today. Financial markets have rediscovered a risk-on frame of mind after being consumed with worry about government bond yields, debt piles and the prospect of a return to tighter policy at the world’s most powerful central bank.
Cryptocurrencies are advancing in a group this morning, a move given strength by recent inflows and one likely to attract even more of those vital funds. Perhaps investors are realising that they can live in a world of higher US [interest] rates, though falling oil prices certainly help too.
UK transport secretary: Technical issue at Nats has been fixed
The UK transport secretary, Heidi Alexander, has just said that the technical issue at Prestwick Centre has been fixed – but warned there could be “some delays as things reset”.
She said on X:
There has been a further IT issue affecting @NATS.
Engineers have fixed the problem and systems are resuming.
I know this will be deeply frustrating for passengers after the previous issue.
There may be some delays as things reset. Please check with your airline for updates.
Aviation News UK posted on X:
A Flight Data Processing System (FDPS) failure at Prestwick Centre continues to disrupt Scottish-controlled airspace.
🔴 60% below normal capacity
⚠️ High delays
🚫 No critical flights accepted
⏰ Restrictions currently extended until 14:00 UTC
The disruption is affecting the wider Scottish control area — not just Prestwick Airport — with delays reported at Glasgow, Edinburgh and Prestwick.
Manchester airport posted the Nats statement on Twitter, with passengers due to travel today advised to keep an eye out for updates from their airlines.
Airlines including British Airways and easyJet have reported immediate cancellations.
A total of 24 flights have so far been cancelled across UK airports, according to the analysts Cirium. However, many flights continue to operate.
An easyJet spokesperson said:
A Nats air traffic control system failure in its Prestwick centre is causing delays to flights with some unable to operate. This, once again, calls into question the resilience of Nats’s systems and demonstrates the need for firm actions to prevent these repeated failures.
A BA spokesperson said:
Yet another technical fault with Nats means some of our customers are likely to experience disruption to their travel plans today. This is disappointing, and while it is an issue that is entirely out of our control, we’re doing everything we can to limit the impact on customers and are keeping them updated.
Air traffic control failure disrupts flights in Scotland, Northern Ireland and northern England
UPDATE: ‘Technical issue’ has been fixed, according to UK transport secretary. An air traffic control failure has disrupted flights in parts of the UK, about two weeks after a software glitch caused widespread flight chaos in the UK.
A number of departing and arriving flights at Scottish airports have been severely delayed, with disruption affecting Scotland, Northern Ireland and northern England.
The technical fault has been reported at National Air Traffic Services (Nats)’ second control centre, at Prestwick in Scotland.
NATS said the issue is unrelated to the problems earlier this month, when more than 2,000 flights were cancelled to and from the UK due to a NATS software glitch, disrupting travel plans for hundreds of thousands of passengers.
Some flights at Manchester Airport are delayed as a result this morning. EasyJet and British Airways issued messages to passengers that they may face delays.
In a statement, a Nats spokesperson said:
We are investigating a technical issue at our Prestwick centre in Scotland. To maintain safety, air traffic regulations have been applied to manage traffic demand.
Engineers are on site investigating and working to resolve the issue. The issue is unrelated to the technical problems experienced earlier this month.
We apologise for the disruption and any delays to passengers’ journeys. Passengers should check with their airline for the latest information on their flight.
Updated
Fixed-rate UK mortgage costs jump to multi-year highs
Fixed-rate mortgage costs have jumped to multi-year highs in the UK.
The average two-year fixed residential mortgage rate rose to 5.88%, its highest since 16 April and up from 5.84% last Friday, while the average five-year is at its highest since October 2023, at 5.92%, up from 5.88%.
Rachel Springall, Finance Expert at Moneyfacts, said:
Borrowers will be frustrated to see fixed mortgage rates soar, with around £150 added to monthly mortgage payments, based on a typical mortgage [of £250,000 over 25 years], since the start of March 2026. There were notable rate hikes last week from the major brands, some increasing for the second time this month to catch up with rising swap rates.
The average two-year fixed rate is approaching its highest point seen this year, rising by over 1% since the start of March, and the average five-year fixed is now back to highs not seen since October 2023, the month after the infamous mini-budget.
In the months ahead, remortgage business is expected to boom, so any borrower coming off a cheap fixed rate must seek advice. It could be a good opportunity for lenders to consider extending their product transfer windows while rates remain volatile, giving existing customers more time to secure a new deal while also helping lenders protect their mortgage books.
The interest rate on a typical two-year mortgage fixed deal of £250,000 over 25 years has risen from 4.84% in March to 5.88%.
There are now 7,419 residential mortgage products available, down slightly from 7,435 at the end of last week.
Bund yields drop, shrugging off German vote but Merz under scrutiny
German markets have largely shrugged off the results of two regional elections.
The yield, or interest rate, on the 10-year government bond, known as Bund and the eurozone benchmark, retreated 5 basis points to 3.48% this morning, mirroring moves in other countries.
The main stock exchange, the Dax in Frankfurt, rose 0.8%.
Germany’s embattled chancellor, Friedrich Merz, has vowed to stay in office and fight for future-proofing economic changes despite heavy losses for his conservative party in two state elections, one to the far right in Mecklenburg-Western Pomerania, and the other to a leftwing party, in Berlin.
Preliminary results indicated Merz’s Christian Democratic Union (CDU) tallied just 4.9% in Mecklenburg-Western Pomerania, below the 5% threshold needed to enter the state parliament and indicating the party may be excluded altogether. It would be the CDU’s worst-ever state score, which Merz called a “disaster”.
Holger Schmieding, chief economist at Berenberg Bank, said he expects Merz’s coalition government of CDU and Social Democrats to carry on with its pro-growth reforms.
After a potentially contentious debate, the [federal] coalition will likely soften some of the envisaged entitlement cuts for instance with a long transition period for the end of early retirement.
Nonetheless, I still expect the coalition to implement the bulk of its planned pro-growth reforms.
Updated
European stock markets bounce higher; bond yields tumble as oil slides
European stock markets have also bounced higher, while government borrowing costs retreated, as oil prices slid on reports that more supplies are passing through the Gulf than though.
The UK’s FTSE 100 index rose 0.36% to 10,697, up nearly 40 points. Germany’s Dax gained nearly 0.7%, France’s CAC rose 0.6%, Italy’s FTSE MiB advanced 0.74% and Spain’s Ibex is up 0.5%.
The pan-European Stoxx 600 rose 0.65%, led by technology and travel stocks.
The tech sub-index increased 1.9% as chip-linked stocks Soitec jumped 4.6% and Aixtron advanced 3.9%.
France’s Soitec manufactures substrates that are used to make semiconductors, used in smartphones, tablets and computers while Germany’s Aixtron, founded by university researchers in 1983 as a spin-out from RWTH Aachen University, also produces components for chipmakers.
US stock futures are pointing to a stronger open on Wall Street later, suggesting the tech-heavy Nasdaq could rise almost 1%.
Brent crude, the global oil benchmark, is down 2% (or $2.1) at $101.78 a barrel, the lowest in more than a week. This has triggered hopes of lower inflationary pressures, and pushed government bond yields lower after Friday’s turmoil, sparked by expectations of a steeper path for interest rates.
The yield, or interest rate, on the 10-year UK gilt fell nearly 7 basis points to 5.241%.
Italy’s 10-year yield dropped 9 basis points to 4.355%, after jumping 10bps on Friday. The equivalent French yield fell 10bps to 4.47%, after rising 12.5bps on Friday. The German 10-year yield eased 5ps to 3.47%, wiping out Friday’s increase.
Updated
Reuters reports: Iran has conveyed its conditions to mediators for re-engaging in negotiations aimed at ending the war with the US, Al Jazeera cited Iran’s security chief, Mohsen Rezaei, as saying in an interview on Saturday.
However, tensions in the Middle East remained high as Yemen’s Iran-backed Houthis said they attacked “sensitive” sites in the Saudi capital of Riyadh on Saturday with missiles and drones, as well as an Aramco facility in the Red Sea city of Yanbu, a key oil export hub.
On Monday, a spokesman for the Revolutionary Guards, Hossein Mohebbi, said Iran would use new weapons and target locations not previously attacked if the US launched a new offensive, according to the Fars news agency.
China has asked Iran to help rein in the Houthis after an appeal to Beijing by Saudi Arabia following the attacks, three Iranian sources told Reuters.
The attacks by the Houthis on Saudi Aramco’s East-West pipeline have prompted the state energy firm to ramp up exports through the strait of Hormuz this month and next after halting some shipments via Yanbu.
JPMorgan analysts said on Friday:
Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia’s East-West pipeline.
They added that total oil flows averaged 17.1m barrels per day (bpd) in the past 10 days, just 6.1m bpd below the 2025 average.
“The most notable pivot has come from Saudi Arabia,” the analysts said, as satellite data indicated Saudi oil moving through the strait of Hormuz averaged 2.9m bpd over the past six days, up from just 700,000 bpd in August.
Introduction: Asian shares rise amid optimism around US-Chinese talks on trade and AI; oil prices slide
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Stock markets in Asia have risen led by technology shares, lifted by optimism around talks between the US and China on trade and artificial intelligence, while oil prices declined.
The talks between US and Chinese economic officials on Sunday came ahead of much anticipated summit on Thursday between US president Donald Trump and Chinese president Xi Jinping in Washington.
US Treasury secretary Scott Bessent said the two countries had discussed setting up a channel to communicate about AI issues called the “US-China AI dialogue”.
Chinese state media described the talks as “candid, in-depth and constructive”.
Nvidia’s co-founder and chief executive Jensen Huang has rejected grim warnings from AI researchers that the technology could lead to humanity’s extinction within a few years, calling this overblown “doomsday narratives”. He told CBS News:
2030 is not going to be the end of the world. There is 0% chance that’s going to be the end of the world.
Scaring people is unnecessary. It is irresponsible.
Hong Kong’s Hang Seng gained 0.88%, South-Korea’s tech-heavy Kospi jumped 2% and China’s CSI 300 rose 0.6%. Tokyo was closed for the silver week holiday, which runs until Wednesday.
Stephen Innes, analyst at Quintex Intel, said:
Scott Bessent and Chinese vice premier He Lifeng have already laid the groundwork [for the Trump-Xi meeting] in New York, with trade, investment and artificial intelligence on the table, but this is not a market waiting for a grand bargain.
It is waiting to see whether both sides can keep the next trade grenade in the drawer.
Oil prices are down sharply this morning, adding to Friday’s declines on hopes that Saudi Arabia is moving to restore about half of crude shipments after they were disrupted by the stoppage of its east-west pipeline to the Red Sea, despite ongoing attacks by Yemen’s Houthis.
Brent crude, the global oil benchmark, fell just over 2% to $101.8 a barrel, a drop of $2.01. But it remains above $100 and significantly higher than pre-Iran war levels of around $72 a barrel.
There was relief that the bombing threatened by Trump has not happened (yet). Governments across the Middle East are bracing for an escalation of violence after Iran claimed it had received intelligence that the US was preparing for a renewed bombing campaign against the Islamic Republic.
The US president reportedly told a Fox News reporter “very big things are going to be happening in the not-so-distant future” and that the options he was considering were “wiping Iran out, letting them rot economically or making a deal”.
Investors are also hoping for diplomatic progress on the Iran war at this week’s UN meeting. Trump said he would be open to mmeeting Iranian president Masoud Pezeshkian, who is expected to be in New York for the UN General Assembly.
The Agenda
-
9.30am BST: UK S&P Global Consumer sentiment index
-
9.30am BST: ONS to publish “Measuring artificial intelligence in the UK economy using a thematic account
-
1.30pm BST: US Chicago Fed National Activity Index for August
-
2.10pm BST: IMF managing director Kristalina Georgieva speaks at the IMF Legal Department 80th anniversary conference in Washington
Updated
