Closing post
Time to recap…
HSBC, Nationwide and Coventry building societies are the first big UK lenders to announce an increase in rates on their fixed mortgage deals as a result of the Middle East crisis, with brokers predicting others are likely to follow.
Experts have said the war could trigger an energy price shock that pushes up UK inflation, which may in turn force the Bank of England to increase interest rates.
That uncertainty has affected the money market swap rates that lenders use to decide the rates on their new fixed mortgages. Aaron Strutt at the broker Trinity Financial said these were the first large lenders to announce rate hikes “based on the funding cost increases brought on by the chaos in the Middle East”.
It’s been another volatile day in the markets. The UK’s FTSE 100 is now in the red again – down 102 points or 1% at 10,464 points.
Oil is up 3.3%, while European gas prices are slightly higher this afternoon.
Ministers are discussing the possibility of intervening to protect the public against soaring household energy bills if the Middle East conflict drags on.
Oil and gas prices have surged since Donald Trump started his bombing campaign against Iran, which has responded by closing off a crucial shipping route through the strait of Hormuz and by attacking regional energy infrastructure.
Household energy bills are fixed until July, when the energy price cap is next set by the regulator, Ofgem. Forecasts suggest it could then rise by 10%, adding £160 a year to the average bill.
The Japanese carmaker Nissan has reportedly said it could be forced to close its plant in Sunderland if the UK is not fully included in new “Made in Europe” manufacturing rules proposed by the EU.
The UK car industry trade representative group also said it was “gravely concerned” about the proposals it said could damage the £70bn annual cross-channel trade.
Shipping giant MCS has announced a new ‘emergency fuel surcharge’ on cargo from Northern Europe and the Mediterranean to Australia and New Zealand.
MSC 🚢 | Shipping Update
— CapitalInsight (@CapitalInsight3) March 5, 2026
✅ To apply Emergency Fuel Surcharge (EFS) on cargo from Northern Europe to the Indian Subcontinent
✅ Effective 16 March 2026 until further notice
✅ Charges set at $100/TEU (dry units) & $150/TEU (reefer units)
Reflects rising fuel costs & shipping…
