Good morning and welcome back to the City AM liveblog.
After a dose of optimism hit markets on Wednesday, that looks to all be eradicated come this morning.
In a 19-minute long address to the nation, Donald Trump vowed to “finish the job” in Iran and warned the country would be hit “extremely hard” in the coming weeks.
The sentiment quickly sent jitters across markets that were beginning to price in a ceasefire.
Brent crude – the international benchmark for oil prices – spiked over five per cent jumping to the $106 mark. It followed growing fears around a shortage of fuel after the Strait of Hormuz, where around a fifth of the world’s oil supply flows through, has had traffic all but halted since the outbreak of war.
Trump said in his address: “To those countries that can’t get fuel, many of which refuse to get involved in the decapitation of Iran… build up some delayed courage, go to the Strait and just take it. Protect it.”
The President also called for countries to buy US oil instead.
Rounding up his speech, Trump said: “Every American can look forward to a day when we are finally free from the wickedness of Iranian aggression and the spectre of nuclear blackmail”.
We’ll be bringing you the latest reaction out of global markets and all the top economic analysis to the unfolding situation.
Here’s a few headlines to start your morning with:
- UK robotics firm auditor raises evidence concerns as losses widen
- Supermarket bosses meet Rachel Reeves amid dire food inflation warning
- Chelsea suffer biggest financial loss in Premier League history
- Hotel investment tops £1bn in bumper start to year
- Costs up, demand down: Manufacturers suffer biggest squeeze since 2022
- Matcha mayhem: Blank Street eyes $100m expansion
- Starmer moots closer ties with EU amid Trump row
