Oil prices rise over 4% as US and Iran trade attacks in Gulf
12 reported
Attacks between the US and Iran in the Gulf continued, with Tehran stating it had closed the Strait of Hormuz while US officials said 20 ships were escorted through the waterway in the past 24 hours. The US military launched a new wave of attacks against Iran, and Iran launched missile and drone attacks on US bases in neighboring countries. Tehran said the latest strikes had “rendered futile” diplomatic efforts of the past few months. Brent crude rose 4.2% to $79.18 a barrel in early London trading, while spot gold fell 1.5% to $4,060 an ounce. Asian shares tumbled, with Japan’s Nikkei losing 2.1% and South Korea’s Kospi plummeting nearly 10%. The FTSE 100 index pared early gains and traded less than 8 points higher at 10,505.
What’s reported
Tehran said it had closed the Strait of Hormuz; Donald Trump insisted the key shipping passage remained open.
US officials said 20 ships were escorted through the waterway in the past 24 hours.
The US military launched a new wave of attacks against Iran; Iran launched missile and drone attacks on US bases in neighboring countries.
Tehran stated the latest strikes had “rendered futile” diplomatic efforts of the past few months.
Trump stated last Wednesday that the ceasefire was over.
Qatari and Pakistani mediators are trying to salvage the deal and bring the two parties back to the negotiating table.
Brent crude rose 4.2% to $79.18 a barrel; spot gold fell 1.5% to $4,060 an ounce.
Japan’s Nikkei lost 2.1%; Hong Kong’s Hang Seng slipped 0.1%; China’s CSI 300 slid 1.78%; South Korea’s Kospi plummeted nearly 10%.
The FTSE 100 index traded less than 8 points higher at 10,505, up 0.08%.
UK 10-year gilt yield rose 4 basis points to 4.91%.
Andy Burnham is expected to become the new prime minister next Monday, after being elected Labour leader on Friday.
Jefferies analyst Mohit Kumar said: “For now, we remain hopeful that both parties would return to the negotiating table.”
Key figures
Andy Burnham, former Greater Manchester mayor and now Makerfield MP, expected to become Labour leader and prime minister.
Donald Trump, former US president.
Kevin Warsh, US Federal Reserve chair.
Mohit Kumar, Jefferies analyst.
Nick Bubb, independent analyst.
Sources: The Guardian
