FTSE 100 Live: Stocks to rise; Trump pauses Iran strikes over Hormuz talks
Welcome back to the City PM FTSE 100 liveblog.
It’s Monday morning and the FTSE is expected to jump on the market open, with futures indicating a gain of more than 30 points.
This comes off the back of a week market by fresh hostilities in the Middle East, as Iran and the US traded blows and the Houthis threatened to open up a new permanent front to the conflict in the Red Sea.
Brent crude oil prices jumped to a two-month record of $100 per barrel on Thursday, before falling slightly on Friday. The FTSE 100 managed to defy the investor caution caused across many of the world’s other leading markets, with the UK’s blue-chip index gaining 1.3 per cent across the week.
US President Donald Trump said over the weekend that he is pausing strikes on Iran as an Omani delegation pursues crunch talks to secure a deal to manage shipping transit through the Strait of Hormuz. On Sunday, an oil tanker exploded on Sunday after hitting a naval mine in the Strait, according to Iran’s semi-official Tasnim news agency.
Last week’s renewed tensions in the Middle East will be at the front of the minds of the Bank of England’s Monetary Policy Committee, which is widely expected to vote to hold interest rates on Thursday.
Thomas Pugh, chief economist at RSM UK, said he believes oil prices will “largely” steer the path of interest rates for the next year.
“If they remain close to 100 dollars per barrel over the summer, a September rate hike would move firmly onto the table, with another in the winter likely,” he said.
We’ll be bringing you the latest market updates and analysis as the day develops.
The weekend’s top stories:
- Bank of England to hold interest rates as oil price surge threatens UK economy
- Saudi ship struck by Houthis had insurance from Lloyd’s insurance giant
- Scotland’s tax hike may have backfired as receipts fall
- Burnham ‘aware’ of Healey’s extra £9bn spending demands
- Energy operator ‘flying blind’ as net zero push threatens hiked bills and blackouts