US-Iran Tensions Fuel Oil Price Surge

Oil prices surged to their highest level since July due to rising tensions between the US and Iran. The US struck three Iranian crude oil tankers in retaliation for the IRGC firing ballistic missiles at two US warships, causing Brent crude oil to spike.

The conflict has increased the risk of attacks on shipping in the Strait of Hormuz by the Iranian regime, as well as potential attacks on refining facilities across the Middle East. The UK's labour market is showing signs of recovery, with permanent job placements increasing and temporary placements growing at their strongest rate in over three years.

However, employment news has not been universally positive, with Jaguar Land Rover facing significant revenue pressures due to subdued demand and competition from Chinese EV manufacturers. The UK's GDP data for the month will be released this week, which could provide further support to activity.