Key facts
- The FTSE 100 is poised for a flat opening.
- Brent crude oil prices surged to $100 a barrel, a level not seen since May.
- The price increase followed attacks by the Houthis on two Saudi Arabian tankers in the Red Sea.
- President Trump stated Iran would be held responsible for the attacks and threatened "major military punishment."
- EasyJet shares fell nearly 11% due to reports of an EU review into airline ownership rules.
- June retail sales data is expected to show a slowdown in consumer spending.
The FTSE 100 is expected to open flat as oil prices surged past $100 a barrel for the first time since May, driven by Houthi attacks on two Saudi Arabian tankers in the Red Sea. The escalation in the Middle East has prompted President Trump to issue new threats to Iran, holding the country responsible for the militia's actions and warning of "major military punishment."
This surge in energy prices threatens to undermine UK households' cost-of-living relief efforts. Further economic indicators are awaited, with June's retail sales statistics expected to show a slowdown in growth.
In corporate news, EasyJet shares plummeted nearly 11% following reports that the European Union is reviewing airline ownership rules, raising concerns about a potential takeover bid for the budget airline.