Closing post
Time to wrap up…
Oil prices have jumped back above $100 a barrel and global stocks fell after weekend talks between the US and Iran ended without an agreement and Donald Trump imposed a blockade of the strait of Hormuz.
The US president announced the blockade on Sunday, targeting Iranian vessels and ships that have paid a toll to Iran for passage through the strait, in an attempt to choke off the flow of Iranian oil.
US Central Command said it would start blocking all Iranian Gulf ports and coastal areas from 3pm UK time, in effect seizing control of maritime traffic in the strait of Hormuz.
Trump said on Monday afternoon that ships coming near the blockade would be “eliminated”, warning Iran not to send its “fast attack ships”:
Warning: If any of these ships come anywhere close to our BLOCKADE, they will be immediately ELIMINATED, using the same system of kill that we use against the drug dealers on boats at Sea. It is quick and brutal. P.S. 98.2% of Drugs coming into the U.S. by Ocean or Sea have STOPPED!
Oil and gas prices rose sharply again, after the two-week ceasefire between the US and Iran announced on Wednesday prompted a sharp fall in energy prices, and crude ended the week below the psychologically important $100 a barrel threshold.
Brent crude rose 6.9% to $$101.74 a barrel on Monday, while US crude was up 7.2% at $103.55 a barrel.
Gas prices also increased, with the British wholesale gas contract for May soaring by almost 12% earlier and later up 7.25% at 117.57p per therm.
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And Goldman Sachs has beaten expectations with its first-quarter results, reporting a rises in profits and higher-than-expected investment banking revenue.
Updated
FTSE 100 closes lower
After a day dominated by Iran worries, London’s stock market has closed slightly lower.
The FTSE 100 index of blue-chip share has ended the day down 17.5 points, or -0.17%, at 10,582 points.
Utility companies led the fallers, perhaps a sign that investors are losing their appetite for ‘defensive stocks’ that might protect them from a market wobble.
Oil companies posted some gains, with BP up 0.9% and Shell gaining 1.5%.
