Oil, gas and UK government borrowing costs prices jump as Middle East tensions ratchet higher – business live
Summary
Oil prices have risen to their highest level in four weeks due to renewed tensions between the United States and Iran, including a US naval blockade and exchanged attacks. Meanwhile, US inflation has fallen more than expected, dropping to 3.5% annually, which may influence Federal Reserve decisions on interest rates.Key Facts
- Brent crude oil prices increased by 4.55%, reaching $87.08 per barrel, the highest since mid-June.
- US West Texas Intermediate crude also rose to around $81 per barrel.
- The US and Iran previously had a ceasefire and peace talks, but tensions have escalated recently.
- Iran continues talks with Qatar, Pakistan, and Oman to avoid further conflict.
- US inflation fell to 3.5% yearly in June, lower than economists’ predictions.
- Core inflation (excluding food and energy) dropped to 2.6%, below forecasts.
- Rising oil prices may keep inflation and borrowing costs elevated internationally, including in the UK.
- The Federal Reserve’s policy decisions could be affected by these inflation trends and energy price changes.
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