MARKET NEWS
Oil hits $126 and gilt yields soar on Iran turmoil as Lloyds warns of stagflation - THIS IS MONEY
Lloyds slashed its UK economic forecasts yesterday as a fresh surge in oil prices and borrowing costs, as well as a stock market sell-off, deepened gloom caused by the Iran war.
The country’s largest domestic lender warned that the ‘stagflationary consequences’ of the conflict could last well into next year.
Lloyds expects unemployment and inflation to be higher, and growth slower, than previously thought because of an energy shock that has sent oil and gas prices soaring.
Markets were further jolted yesterday as it emerged that Donald Trump has discussed the possibility that the US blockade of Iran could last for months.
That sent the price of a barrel of Brent crude soaring to top $120, the highest level of the war so far. After climbing above $120 yesterday, the oil price rose again today with Brent Crude trading at $126 this morning.
