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FTSE 100 Live: OECD slashes UK growth prospects as inflation set to jump

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North Sea oil terminal with storage tanks and docking facilities under a clear sky, highlighting energy infrastructure.
Oil prices have kept the pressure on global markets.

Good morning and welcome back to the City AM liveblog.

The White House’s Press Secretary has said the US is “very close” to meeting its objectives in the Iran war, though offered no specific timeline on when the conflict could come to a close.

But Iran’s foreign minister has said the country has “no intention of negotiating for now” with the US, crushing any hopes that a ceasefire may be imminent.

The conflicting messages did little to soothe investors and sent Brent crude prices – the international benchmark for oil and key metric for volatility throughout the conflict – two per cent higher to $104 in early trading on Thursday.

It follows markets across the globe bouncing back on Wednesday on the hopes that some reprieve was coming to crisis in the Middle East.

Reports had emerged that the US had sent a 15-point plan to Iran, and whilst there was a continuation of mixed messages from Iran and the US, investors appeared to look beyond the cloudy sentiments.

The FTSE 100 clawed back around 1.5 per cent, finishing the day back above the 10,100p mark.

Meanwhile a barrel of Brent crude settled below triple digits at $98 after a two per cent loss.

“Markets are pricing in the possibility of a ceasefire, even if the prospect of a lasting settlement still appears remote,” said Neil Wilson, investor strategist at Saxo Markets.

But he added the gains were “hardly euphoric” with Trump’s plan for peace looking “more like a Christmas wish list, largely based on previous demands of the Trump administration.”

We’ll be bringing you the continued market and economic fallout to the unfolding events in the Middle East and all the top news in the City.

Here’s a few of our top headlines from yesterday: