Oil and gas prices jump, UK house prices drop amid US-Iran attacks
Oil and gas prices rose after the U.S. and Iran continued launching attacks on each other, dampening hopes of a peace deal. U.S. Central Command reported hitting Iranian radar and drone command sites in self-defense, and Iran’s Revolutionary Guard said it targeted a U.S. air base used for an attack on southern Iran. Brent crude increased 3.5 percent to $94.29 per barrel, and British wholesale gas jumped nearly 6 percent to 117.3p per therm. UK house prices fell between April and May, rising only 1.7 percent year-on-year, according to the Nationwide House Price Index. Eurozone factory input costs hit a four-year high due to the war, and the UK manufacturing PMI rose to a four-year high of 53.9. Shares in ME Group dropped after it reported weaker demand linked to the conflict, while easyJet shares rose 11 percent after Castlelake signaled a possible takeover bid.
What’s reported
U.S. Central Command said it struck Iranian “radar and command and control sites for drones in Goruk, Iran and Qeshm Island” in self-defense after “aggressive Iranian actions.”
Iran’s Islamic Revolutionary Guard Corps said it targeted an air base used by the U.S. for an attack on southern Iran.
Brent crude closed at $94.29 per barrel, up 3.5 percent from $92 on Friday night (a six-week low).
The month-ahead British wholesale gas contract rose almost 6 percent to 117.3p per therm, compared to 78.5p before the Iran war began.
UK house prices fell between April and May, up just 1.7 percent in a year, per the Nationwide House Price Index.
Eurozone factory input costs saw the biggest monthly jump in four years; the S&P Global Eurozone Manufacturing PMI fell to 51.6 in May.
UK manufacturing sector expansion hit a three-month high, lifting the PMI to 53.9 in May.
ME Group shares tumbled after it reported weaker demand in April, particularly in France, blaming lower consumer spending due to the Middle East conflict.
easyJet shares rose 11 percent after private credit firm Castlelake said it was considering a possible takeover offer; easyJet called the timing “highly opportunistic.”
Key figures
Donald Trump, former U.S. president (quoted: “Iran really wants to make a deal”)
Paul Donovan, chief economist at UBS Global Wealth Management
Sarah Coles, head of personal finance at AJ Bell
Chris Williamson, chief business economist at S&P Global Market Intelligence
Matt Britzman, senior equity analyst at Hargreaves Lansdown
Tom Bill, head of UK residential research at Knight Frank
Sources: The Guardian
