FTSE Holds Near a Record as Oil Slips Again
The FTSE 100 held near a record after closing at a five-month high, as oil slipped again on the pause in the US–Iran war and the retreat of the war-risk premium. Brent crude fell below $88 a barrel, its lowest in weeks, though an overnight drone strike on a Saudi oil plant clouded the outlook. Sterling was steady and gilt yields eased to around 5 per cent.
The retreat in energy prices has buoyed British shares and eased the inflationary threat hanging over the Bank of England, which announces its interest-rate decision on Thursday. The Bank is still widely expected to hold Bank Rate, with the drop in oil strengthening the case against a rise and offering some relief to mortgage-holders. Yet the calm is fragile: the strike on Saudi Arabia’s Abqaiq plant is a reminder that any renewed disruption to Gulf supply could send crude surging again within hours. Watch the oil price through the day and the Bank’s guidance on Thursday.