FTSE 100 Live: Gas price surge after LNG halt, stocks slide amid Iran conflict

Good morning and welcome to the City AM liveblog.

Global markets were in store for another dose of risk to kick off the new week after tensions in the Middle East reached a boiling point over the weekend.

The cost of a barrel of brent crude – the international benchmark for oil prices – climbed 13 per cent to $82 on early Monday marking its highest level since July 2024 as concerns spiked over a significant amount of the world’s oil supply amid the attacks on Iran.

Meanwhile, gold closed in on the $5,400 mark as investors flocked to the safe haven metal.

Analysts are sounding the alarm on the inflationary consequences from brewing conflict in the Middle East.

“Higher energy prices have a notable impact on inflation,” Ipek Ozkardeskaya, senior analyst at Swissquote, said.

She adding whilst energy makes up around eight to 10 per cent of consumer price index baskets – the headline benchmark for inflation – it can account for “up to one-third to one-half of headline inflation” during “major shocks” as indirect effects amplify the impact further.

Elsewhere, Kallum Pickering, the chief economist at Peel Hunt, said: “We need to brace for many weeks of uncertainty, especially given the absence of obvious off-ramps for de-escalation, at least for now.”

It follows the US and Israel launching strikes on Iran over the weekend with President Donald Trump calling for the citizens of Iran to “take over” the country’s government.

Keep following with us below as we bring you the latest.

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

• Block slashes 4,000 jobs in latest AI warning
• Female entrepreneurs favour human connection as many see isolation a challenge
• Top Barclays executive to take the helm at UK banking watchdog
• Investors tremble as Iran risks oil price spiral with attack on Strait of Hormuz
• Blair think tank turns fire on Labour over wage hikes and tax squeeze
• Royal Mail owner to be grilled by MPs over delivery performance
• Sunak pushes deregulation as North Sea pressure grows