Trump Threatens Iran, Oil Prices Soar on Inflation Fears

Oil prices have surged by around seven percent after US President Donald Trump vowed to 'hit Iran hard' amid escalating tensions in the Middle East.

The price of West Texas Intermediate (WTI) crude oil has jumped above $84 (£63.19) and Brent closed at around $90 (£67.71) following Trump's comments.

This comes ahead of a potential announcement from the US Federal Reserve regarding interest rates, with analysts warning that rising energy costs could lead to increased inflation.

Danni Hewson, head of financial analysis at AJ Bell, noted that 'unless tensions de-escalate quickly, September's rate story will be one of hikes,' and that 'the fluctuations over the past months are having a significant impact on the airline sector.'