Oil prices climbed above $90 a barrel today after the US intensified strikes on Iran, raising fears of further disruption to global energy supplies.
Brent crude briefly surged almost 4% before easing back to just above $90, its highest level in more than a month, amid concerns over the security of the Strait of Hormuz, through which around a fifth of the world's oil passes.
The latest escalation follows fresh US strikes on Iranian military targets and renewed threats to shipping in the region. US officials have also vowed to "swiftly punish" Iran following the deaths of American soldiers in an attack on a base in Jordan.
Higher oil prices pushed government bond yields higher as investors assessed the risk of more persistent inflation, while Asian markets were mixed and European shares were expected to open lower.
Markets are now balancing concerns over a wider Middle East conflict and its impact on energy prices against growing uncertainty over whether the AI-driven stock market rally can be sustained.
FSTE100
The UK's flagship share index, the FTSE 100, was down 68-points at 10,532 shortly after opening this morning.
Brent crude oil futures were up 2.8%, sitting at $90.57 a barrel this morning.
Companies reporting today
- Big Yellow Group - Q1 Trading Statement