As it happened: FTSE 100 rises after inflation jump; oil supply in focus

Welcome back to the City AM liveblog.

UK inflation has seen a fresh spike to 3.1 per cent in August, up from 2.9 per cent the month prior.

The fresh print comes as Brent crude – the international benchmark for oil – holds around the $108 per barrel mark, near four-month highs.

Industry data managed to show a surprise increase in US crude inventories on Wednesday despite widening supply disruptions in the Middle East. API data showed US crude stockpiles surged by 7.14m barrels last week following a 300,000-barrel decline in the previous week, defying expectations for another drawdown.

But this has coincided with Saudi Arabia shutting oil loadings at its Yanbu port following the closure of a crucial East-West pipeline. There is no clear timeline for when operations may restart at the route, which is a key alternative passage to the Strait of Hormuz.

In Libya, the national oil company also suspended operations at two oilfields and a pumping station amid ongoing protests.

The UK’s Maritime Trade Operations reported yesterday that a vessel had been struck by an unknown projectile in the Strait of Hormuz yesterday. No damage or environmental impact was said to have taken place. But the move amplified widespread concerns that the narrow waterway was still not a safe passage for ships.

The US said its forces had redirected more than 100 commercial vessels in the strait to ensure compliance with its naval blockade.

We’ll be bringing you all the latest market updates and analysis.

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