Global oil prices climbed sharply after Iran launched a series of attacks on fossil fuel tankers near the strait of Hormuz, prompting Donald Trump to declare the ceasefire with Iran over. Brent crude, the global benchmark, jumped almost 6% on Wednesday to more than $80 a barrel, its highest level since the US and Iran agreed the truce last month. The renewed tensions rippled through financial markets, raising the prospect of higher energy bills for households and fresh inflationary pressure in the UK.

At least three tankers were attacked within 48 hours, including a vessel carrying liquefied natural gas, while at least four oil and gas tankers turned back from the strait, effectively halting traffic through the vital route. In the UK, two-year gilt yields rose 15 basis points to 4.35% as markets priced in a Bank of England rate rise, and the FTSE 100 fell nearly 1.7% to 10,489, though BP and Shell gained. European gas prices rose around 5%, and analysts warned of higher pump and winter energy costs, though they stopped short of forecasting a return above $100 a barrel, citing the market's resilience during the earlier crisis, when the effective supply loss was ultimately just 3.1m barrels a day.