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Oil prices have surged above $100 a barrel following former President Donald Trump's announcement of a potential blockade of the Strait of Hormuz. This escalation comes after failed peace talks between the United States and Iran, raising concerns about supply disruptions in a critical oil transit route.
In early trading, European stock markets reflected the uncertainty, with shares in major airlines experiencing significant declines. British Airways' parent company, International Airlines Group (IAG), saw a drop of over 2%, while budget airlines Wizz Air and easyJet fell by 6.5% and 3.8%, respectively. The market's reaction indicates a cautious sentiment among investors, who are weighing the implications of increased geopolitical tensions on global oil supply and prices.
Despite the initial market response, analysts suggest that the sell-off may be modest, with some indicating that investors are becoming desensitized to Trump's provocative statements. Bill Blain, a principal at Wind Shift Capital Advisors, noted that the market's muted reaction could lead to more volatility in the future.
As the situation develops, UK consumers and businesses may face higher fuel costs, which could have broader implications for inflation and economic stability in the region.
Source: www.theguardian.com – https://www.theguardian.com/business/live/2026/apr/13/oil-price-barrel-trump-naval-blockade-strait-of-hormuz-stock-markets-ftse-latest-news-updates