Good morning and welcome back to the City AM liveblog.
The London market is returning from the long weekend to little change amidst the conflict in the Middle East.
A day of tensions on Monday have kept question marks hanging over the Strait of Hormuz as nations scramble to combat fuel shortages.
Donald Trump said the US struck seven Iranian “small boats” as they work to open the narrow waterway.
In a post on Truth Social, the President said Iran has “taken some shots at unrelated nations”, including a South Korean vessel.
He once again renewed his calls for other nations to step up and do more to support US efforts to secure commerce in the region.
“Perhaps it’s time for South Korea to come and join the mission,” he said.
It comes as Washington strums up a plan dubbed Operation Freedom by Trump that intends to escort stranded vessels through the narrow channel.
Meanwhile, Islamic Revolutionary Guard Corps (IRGC), according to Iranian state media, has warned that any vessels passing through the “closed” waterway will be “struck and destroyed”.
The United Arab Emirates said a tanker linked to the country’s state-owned oil firm Adnoc was hit in the strait. There were no injuries.
The UAE called the strike “a flagrant violation of UN Security Council resolution 2817, which affirmed the importance of freedom of navigation, and rejected the targeting of commercial vessels or the obstruction of international maritime routes.”
We’ll be bringing you the latest as it unfolds.
Here’s a few of our top stories this morning
- Sparking interest: Could utilities stocks power your portfolio?
- London hotel occupancy slides as Iran war wreaks travel havoc
- ‘Alarming’ lack of private credit understanding in finance bosses
- Tax hikes call time on two pubs a day crushing 2,400 jobs
- Food prices set to soar 50 per cent since cost-of-living crisis began
