UK borrowing costs soar as Iran ceasefire collapses July 14, 2026 The UK’s borrowing costs have sailed past five per cent for only the third time since the onset of the Iran war, in a headache for Andy Burnham just days before he enters Downing Street. The yield on the UK’s 10-year government bond – the benchmark for a country’s long-term ability to borrow – climbed [...]
Strait of Hormuz ‘closed’ as Iran and US exchange strikes July 12, 2026 Iran has declared the Strait of Hormuz closed as it trades fresh strikes with the US over the alleged unauthorised passage of a ship through the vital trade route. The Islamic Revolutionary Guard Corps said on Sunday morning that the waterway, which usually accounts for a quarter of the world’s maritime oil trade, will be [...]
UK borrowing costs surge as Trump declares Iran ceasefire over July 8, 2026 UK borrowing costs surged and the price of oil leapt to a two week-high on Wednesday after Donald Trump suggested his already-fragile ceasefire deal with Iran was over. The yield on ten-year gilts – the primary benchmark for how much it costs the government to borrow – stormed 11 basis points higher to 4.96 per [...]
House prices rise as mortgage rates ease from Iran war highs July 7, 2026 House prices inched up in June as mortgage rates softened following a sharp spike in response to the Iran war. The average UK property price rose by 0.2 per cent in June to £299,330, compared to a 0.2 per cent fall in May, according to the Lloyds house price index. Inflationary fears and expectation of [...]
Interest rate cut is ‘off the table’, says Bank of England governor July 2, 2026 Andrew Bailey has said cutting interest rates is “off the table at the moment” in the clearest sign yet borrowing costs are likely to stay elevated for the rest of the year. The Bank of England governor said on a panel at the European Central Bank’s annual conference in Portugal that inflationary pressures following the [...]
Andy Burnham will be ‘in hock’ to the bond markets whether he likes it or not June 24, 2026 With the highest gilt yields in the G7, more borrowing is no longer an option for the next Prime Minister. That leaves the traditional options: raise taxes, cut spending or embark on more ambitious supply-side reforms in areas such as planning, says Daniel Mahoney Governments needing money usually have three options: tax more, spend less, [...]
Bank of England’s Bailey defends bond sale programme June 15, 2026 Andrew Bailey has launched a robust defence of the Bank of England’s controversial bond sale programme, arguing it will provide the firepower for another round of quantitative easing in a market downturn. Writing in The Times, Bailey argued the central bank’s move to hoover up UK government bonds, known as gilts, in the wake of [...]
‘Nothing is straightforward’: Market analysts warn of US-Iran deal complications June 15, 2026 Top market analysts warned on Monday that “nothing is straight forward” as euphoria spread across European equities after a confirmed peace deal between the US and Iran. Stock markets opened in the green as investors returned to a risk-on mentality after Pakistan announced an agreement between the two nations and Donald Trump declared the oil [...]
Borrowing costs fall as interest rate hike fears ease June 2, 2026 Government borrowing costs fell sharply on Tuesday, after a dovish speech from Bank of England governor and revived hopes of a Middle East peace deal led traders to pare back bets on central bank interest rate hikes. Gilts rebounded across the curve, outperforming their European peers. The UK’s two-year and 10-year government bonds fell as [...]
As it happened: FTSE 100 plunges as Iran pulls out of US peace talks; Mandelson files released June 1, 2026 Good morning and welcome back to the City AM liveblog. Oil has nudged a touch higher to $93 per barrel this morning as uncertainty continues to cloud any prospect of a peace deal in the Middle East. The latest peace proposal between the US and Iran was said last week to be awaiting on the [...]