US-Iran Tensions Disrupt Oil Flow, Weigh on British Equities

British equities declined on Thursday as tensions between the US and Iran continued to impact markets. The FTSE 100 index slipped by 0.55% amidst concerns over oil shipping routes through the Strait of Hormuz.

The ongoing conflict has disrupted oil flow, causing Brent crude to trade above $100 a barrel. Iran claimed responsibility for attacks on two US vessels and eight oil tankers, citing retaliation against US military actions targeting Iranian tankers.

According to Bloomberg News, a senior Iranian official stated that the nation is prepared to escalate the conflict if US attacks persist. Analysts warn of considerable risks to supply, which could lead to sustained higher oil prices exacerbating inflation in the UK economy through 2027.