Oil and gas prices jump on Middle East shipping attacks, sending bond yields higher and stocks lower – business live
Summary
Oil and gas prices have risen sharply due to attacks on ships in the Middle East, causing bond yields to go up and stock markets to fall. This has increased concerns about supply and is affecting financial markets, including government borrowing costs in Europe.Key Facts
- Attacks on shipping in the Middle East have pushed oil prices above $105 a barrel.
- Rising oil prices have caused government bond yields in the Eurozone to reach their highest levels in years.
- France’s 10-year bond yield is near 5%, the highest since 2002, due to worries about its large budget deficit.
- Eurozone finance ministers and the European Central Bank (ECB) are urging France to pass its 2027 budget to calm bond markets.
- There are no immediate plans for the ECB or European Commission to intervene directly in France’s bond market.
- Higher bond yields increase the cost for governments to borrow money.
- Energy price increases are contributing to market uncertainty and influencing interest rate expectations.
- In the UK, retailers like Asda and Morrisons face challenges, with speculation that one or both may disappear within a decade, while some supermarket merger talks have occurred.
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