Oil and gas prices remain volatile
The price of oil had risen as high as 119 dollars a barrel on Thursday.
Oil and gas prices remained volatile today as stock markets also suffered ongoing turbulent trading due to the escalating Iran conflict.
UK natural gas prices eased back a little in early trading on Friday, having jumped more than a fifth on Thursday to its highest level in three years at one stage.
Brent crude was extending gains yet again, up another 2% to nearly 111 dollars a barrel, quickly resuming price rises after initially retreating earlier in the day.
Oil had risen as high as 119 dollars a barrel on Thursday.
Financial markets also quickly erased early session gains, with the FTSE 100 Index in London see-sawing and indices lower across Europe.
The UK’s blue chip share index had opened higher, but later fell as much as 0.6%, before settling to stand largely flat, down 0.1% at 10,053.6.
There were falls across Europe, with the Cac 40 in France and Germany’s Dax 0.4% lower.
Thursday saw steep falls for stocks worldwide after the Israel strikes targeting energy infrastructure sparked Iranian attacks on Qatar, with Shell’s important gas-to-liquid facility damaged in the assault.
Sentiment was initially boosted following a statement late on Thursday by Israeli’s prime minister Benjamin Netanyahu that he would hold off on any further attacks on Iran’s gas field at the request of US president Donald Trump after the Iranian retaliation sent oil prices skyrocketing.
But experts said trading would remain volatile as the conflict shows no sign of a resolution three weeks since the US and Israel’s attacks on Iran began.
The Prime Minister Sir Kier Starmer says he recognises the 'pressure' it's putting on household budgets.
Action already taken by the Government to support consumers includes a £53 million support package for low‑income households who rely on heating oil, the cost of which has skyrocketed since the start of the war, and frozen rail fares and prescription charges.
Ongoing Middle East conflict
Iran’s foreign minister has warned the UK it sees its choice to let the US use British bases as “participation in aggression” in a phone call with Foreign Secretary Yvette Cooper.
Iranian foreign minister Abbas Araghchi criticised the “negative and biased approach of Britain” towards the US-Israeli military action against Iran, as well as the UK’s decision to provide military bases for the US to use.
Sir Keir Starmer has granted the US permission for “defensive” action against Iranian missile sites from RAF Fairford in Gloucestershire and Diego Garcia in the Indian Ocean.
In a post in Farsi on Telegram, Mr Araghchi said he told Ms Cooper: “These actions will definitely be considered as participation in aggression and will be recorded in the history of relations between the two countries.
“At the same time, we reserve our inherent right to defend the country’s sovereignty and independence.”
The UK has faced repeated criticism from Donald Trump since the war began, and is among countries the US president has recently berated for failing to respond to his request for support in the Strait of Hormuz.