FTSE 100 Live: Stocks to slide on new tensions in Strait of Hormuz
Welcome back to the City AM liveblog.
New tensions in the Strait of Hormuz this morning are leaving markets on edge and handing a blow to earlier optimism around a peace deal between the US and Iran.
Oil is moving higher, reversing some of the drawback from the beginning of this week, after an attack in the strait unsettled markets. Brent crude – the international benchmark for oil prices – climbed to $83 per barrel on Friday morning.
It follows report of Iran striking what it described as “hostile targets” in the strait after explosions were reported near Qeshm Island.
The development came as Iran and Oman brokered an agreement on broad terms to open up the Strait of Hormuz. Under the new agreement, ships entering the narrow waterway would travel along a route closer to Iran, while outgoing vessels would use a passage closer to Oman.
Tehran is aiming to prohibit US and Israeli vessels from transiting Hormuz and require countries deemed hostile to pay compensation before being granted passage The nation’s foreign ministry spokesman Esmaeil Baqaei said a deal with Oman would not guarantee safe navigation through the strait.
Baqaei argued security remained impacted by the US blockade of Iran’s ports. Tehran officials have also said the US were not involved in advancing talks in a move that contradicts rhetoric coming out of the White House.
President Trump has continued to claim the US “knocking the hell out of” Iran but added he would “rather make a deal, because I don’t want to kill people.”
We’ll be bringing you all the latest market updates and analysis.
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