Hormuz Disruptions Push Brent Crude Above $100

UK stocks took a hit as disruptions near the Strait of Hormuz kept Brent crude prices above $100 a barrel, weighing on market sentiment.

The high oil price is having far-reaching effects, with Oxford Economics warning that sustained periods of higher energy costs could keep UK inflation elevated into the first half of 2027.

This 'second-round effect' refers to how companies try to rebuild margins and workers seek pay increases to protect their purchasing power, pushing services prices higher.

The Bank of England may need to keep interest rates higher for longer than expected if these pressures build, even as growth slows.