After a recent surge to as much as $80 a barrel, the price of Brent Crude Oil dropped back around 5 per cent on initial news of a ceasefire between Israel and Iran. Escalating Middle East tensions had seen markets concerned over the prospect of a wider war breaking out and the Strait of Hormuz being closed, which would in turn restrict flow and send oil prices even higher. That remains a prospect however, after a furious Donald Trump claimed neither side knew “what the f*** they are doing” after both appeared to breach the ceasefire.
Stock markets around Europe were down, including the FTSE 100, though defence firms were among those soaring after Nato confirmed a spending plan. Overnight, US and Asian stocks rose, while investors may remain cautious domestically after a Bank of England interest rate setter laid out fears over inflation.
