As it happened: Stocks rise; oil falls after Trump pauses Iran strikes
Welcome back to the City AM FTSE 100 liveblog.
It’s Monday and the FTSE 100 has made a positive start to the week, gaining more than 70 points on the market open after oil prices began to fall from last week’s two-month highs.
Brent crude, the international benchmark for oil prices, slipped to $90.58 in early trading on Monday, after the US said that President Trump has paused strikes on Iran while an Omani delegation leads talks to secure a deal to manage shipping transit through the Strait of Hormuz.
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 $100 per barrel on Thursday, for the first time since mid-May, 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.
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.
Jump straight to:
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