As it happened: Stocks slip as oil hits $100 following Houthi attacks on tankers
Welcome back to the City PM FTSE 100 liveblog.
Stocks slipped on Thursday morning as oil surged back to $100 per barrel for the first time since May. Brent crude barrelled up after the Iran-backed Houthis claimed to have attacked two Saudi Arabian oil tankers in the Red Sea. The US last night launched its 12th successive raft of strikes on Iran.
Susannah Streeter, chief investment strategist at Wealth Club, said: “With both the Strait of Hormuz and the Red Sea now under increasing pressure, markets are bracing for the possibility that the conflict could disrupt key energy routes, keep oil prices elevated, and the prospect of interest rate hikes in focus.”
Easyjet posted a £200m profit hit as it saw jet fuel costs soar due to the Iran war. This came after the stock slumped nearly 11 per cent on Wednesday afternoon, to 593p, after Reuters reported that the EU is preparing to review its rules on foreign ownership of airlines.
Shares in property giant Segro surged by seven per cent on Thursday morning, after the company said it was “minded to accept” a £14bn takeover swoop from US property giant Prolologis.
Andy Burnham announced his latest policy pledge on Thursday morning, promising to cut business rates by 20 per cent for pubs, clubs and music venues. The £100m measure will be funded by clamping down on vape shops and rogue online sellers, the government said.
Kate Shoesmith, director of policy at the British Chambers of Commerce, said: “While news of a carve out for pubs, clubs and music venues is welcome, there are many other smaller hospitality companies facing an existential threat.”
We’ll be bringing you the latest market updates and analysis as the day develops.
Jump straight to:
- 11:50am: Heathrow tax bill doubles
- 10:02am: Oil heads towards $100 per barrel
- 8:21am: Segro jumps after announcing it is ‘minded to accept’ £14bn takeover
- 8:10am: FTSE 100 drops on open
- 7:09am: Burnham to cut pub business rates by 20 per cent