Morning Briefing: Tuesday 21 July 2026
- A New Government Takes Shape: Andy Burnham confirmed his Cabinet on his first full day, naming John Healey as Chancellor, with Ed Miliband at the Foreign Office and Rachel Reeves out. His first act was to scrap VAT on domestic electricity from 1 October, expected to cut a typical bill by around £45 a year.
- Petrol & Energy: Brent crude eased back towards $88 a barrel as mediators floated a ten-day truce, but a tenth night of US strikes on Iran and blocked Strait of Hormuz shipping keep prices near five-week highs. Pump and energy costs stay elevated.
- Savings & Markets: The bond market took fright — ten-year gilt yields hit a two-month high near 5 per cent and sterling slipped — as investors waited for the new Chancellor and questioned how the giveaways will be funded. Watch this week’s inflation and borrowing data.
US Strikes Iran for a Tenth Night as Tehran Hits Kuwait
American forces bombed Iranian military targets for a tenth consecutive night, with explosions reported across Qeshm Island, Bandar Abbas, Sirik, Shiraz and Isfahan. Tehran retaliated before dawn on Tuesday, its army claiming surface-to-su…
Mediators Table a Ten-Day Truce as Iran Signals Openness to Talks
Mediators have handed Tehran a proposal for a ten-day ceasefire to revive last month’s collapsed interim deal, a senior Iranian official said, though Washington has played down the prospect of the President accepting it. The US Secretary o…
Oil Retreats From a Five-Week High on Ceasefire Hopes
Brent crude slipped around 0.9 per cent towards $88 a barrel on Tuesday, easing from Monday’s near-$90 close, as reports of a ten-day truce proposal offset the tenth night of strikes and fresh tanker fires in Hormuz. Prices remain near fiv…
Russian Missiles Kill Ten on a Grain Ship Off Odesa
A Russian cruise-missile strike on the Golden Leo, a bulk carrier laden with corn, killed at least ten as it left Odesa — the deadliest attack yet in a widening Black Sea campaign. The dead included nine foreign crew from Syria and India a…
Ukrainian Civilian Toll Hits a Wartime Record as Crimea Link Is Cut
Russia’s intensifying long-range strikes drove Ukrainian civilian casualties to their highest monthly level since April 2022, United Nations monitors reported — 293 killed and nearly 2,000 injured in June. War analysts said Ukraine’s drone…
Healey Made Chancellor as Burnham Purges Starmer’s Ministers
Andy Burnham has confirmed a sweeping Cabinet on his first full day as Prime Minister, naming John Healey — the former defence secretary who quit over military funding — as Chancellor in a surprise choice. Ed Miliband becomes Foreign Secre…
Burnham Scraps VAT on Electricity in His First Act as PM
Andy Burnham has used his first full day in office to remove VAT from domestic electricity bills from 1 October, his opening cost-of-living measure. The Chancellor, John Healey, said the cut is funded by cancelling the previous government’…
Markets Take Fright as Gilt Yields Hit a Two-Month High
Government borrowing costs jumped to their highest in two months and the pound fell after Mr Burnham said he would use “any flexibility” within the fiscal rules. The ten-year gilt yield rose to around 5 per cent, sterling slipped to $1.34…
Trump Brands Britain “Poverty Stricken” as Burnham Courts the President
Mr Burnham’s first day was overshadowed by Donald Trump, who called Britain a “Poverty Stricken Disaster” while praising reports the new Prime Minister could ease curbs on North Sea drilling. In their first phone call, Mr Burnham invited M…
Farage Demands a Snap Election as Badenoch Attacks “Airy Fairy” Plans
Opposition leaders have rounded on Mr Burnham’s unelected arrival in Downing Street. Reform’s Nigel Farage demanded an immediate general election, saying the Prime Minister has “no mandate” beyond his Makerfield by-election. The Conservati…