… Capital Economics said, at this point, the effect of higher oil prices has not spilled over into other areas such as food and drink, where the pace of inflation remained at 1.3% in the year to August. …
… nt attacks on oil tankers lead to fewer ship-to-ship transfers taking place in the Gulf of Oman, which have so far played a key role in providing oil to global markets and keeping a lid on prices,” said Hamad Hussain, senior climate and commodities economist at Capital Economics …
… “Market participants appear to be pricing in a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the Middle East,” said Hamad Hussain, senior climate and commodities economist at Capital Economics …
… David Oxley, chief climate and commodities economist at Capital Economics, told the BBC the direct impact on Iran’s energy revenues would be “somewhat of a damp squib”. …
… Economists at Capital Economics said in a note that the largest rises in long-term borrowing costs were being seen in the “US, UK, France, Italy, and Japan where, to varying degrees, the fiscal outlook is most problematic”. …
… gthened against the U.S. dollar after the figures were published. “June’s increase in retail sales volumes suggests that consumers kept on spending despite the rise in energy prices since the war in Iran began,” said Ruth Gregory, deputy chief UK economist at Capital Economics …
… However Capital Economics’s head of China economics Julian Evans-Pritchard said the actual slowdown in the country’s economy may have less to do with changing conditions, and more to do with a change in the national growth target which had “given the authorities more room to ackn …
… said soft domestic demand meant deflationary pressures had yet to ease meaningfully. “The latest escalation in U.S.-Iran tensions could deliver some renewed upward pressure on inflation in the near term,” said Julian Evans-Pritchard, head of China economics at Capital Economics …
… Ruth Gregory, deputy chief UK economist at Capital Economics, said the Bank of England could raise interest rates later in the year, but “the weakness in economic activity will probably mean rates stay on hold this year”. …
… Stephen Brown, chief North America economist at Capital Economics, said May’s rise alone was “not large enough to prove any ammo” to those on the Fed’s rate-setting committee who want to push interest rates up. …
UK inflation accelerated to 3.1% in the year to August, up from 2.9%, driven by rises in petrol, diesel, and airfares. Motor fuel prices rose 23% compared to August last year as Middle East conflict disrupted global oil supplies and petrol hit its highest price in nearly four years.
UK inflation accelerated to 3.1% in the year to August, up from 2.9%, driven by rises in petrol, diesel, and airfares. Motor fuel prices rose 23% compared to August last year as Middle East conflict disrupted global oil supplies and petrol hit its highest price in nearly four years.
Brent crude futures rose above $100 a barrel for the first time since late July as Iran and the U.S. escalated attacks on tankers in the Strait of Hormuz, with Iran reporting strikes on 10 ships and the U.S. sinking five Iranian oil tankers. Oil markets are reassessing expectations for how long supply disruptions from the region will persist.
Brent crude oil futures surpassed $100 a barrel on Wednesday, a more than six-week high, amid intensifying Middle East conflict that threatens oil flows from the region. Prices have risen a quarter since early last month as the six-month-old U.S.-Iran conflict continues, with recent Houthi attacks on Saudi energy facilities and crude shipments via the Red Sea raising supply concerns.
China's foreign ministry said it opposes US plans to widen economic sanctions against Iran and its trading partners, including Beijing, and will take "all necessary measures" to protect its rights. US Treasury Secretary Scott Bessent described the sanctions as "the single greatest financial offensive ever" against Iran and warned that any nation financially partnering with Iran would be isolated.
Long-term borrowing costs across major economies have reached their highest levels since 2007, driven by inflation concerns, government debt, and AI spending. Rising oil prices, fueled by Middle East tensions, are pushing bond yields higher as investors fear inflation may spike again.
British retail sales volumes rose 1.0% in June, exceeding economist forecasts, as shoppers increased spending on air conditioning and clothing during hot weather and the World Cup. Online sales reached their highest share since April 2021 at 29.4% in the three months to June.
China's economy grew by 4.3% in the second quarter, below Beijing's annual target of 4.5%–5%, as weak domestic demand and external instability offset strong export growth. The slowdown, the lowest quarterly expansion since the end of 2022, reflects imbalances between robust supply and weak consumer spending, alongside a long-running property market slump.
China's producer price index rose 4.1% year-on-year in June, the highest rate since July 2022, squeezing manufacturers' profit margins amid weak domestic demand. The surge was driven partly by energy prices and higher prices in coal mining, electrical machinery, electronics, and ferrous metals.
The UK economy shrank by 0.1% in April as the Iran war raised business costs and affected turnover, according to the Office for National Statistics, though the three-month growth rate remained positive at 0.7%.
US prices rose 4.2% year-on-year in May, the fastest rate in three years, driven by rising energy costs following the US-Israel war in Iran. President Trump said he "loves the inflation" but promised prices would "come down like a rock" when the conflict ends.
US inflation rose to 4.2% in May, the fastest pace in three years, driven primarily by rising energy costs amid the US and Israel's war in Iran. The increase from 3.8% the previous month marks the third consecutive monthly rise in the Consumer Price Index.
UK public sector borrowing hit £24.3bn in April, the highest for that month since 2020, driven by higher spending on benefits and debt interest payments amid weak retail sales and deteriorating growth outlook.
The UK's economy grew 0.3% in March, exceeding analyst expectations of contraction, as consumers and businesses brought forward spending due to fears of future price rises from the Iran conflict. First-quarter growth reached 0.6%, the fastest quarterly pace in a year and the highest among G7 countries reporting data.
The United Arab Emirates is leaving OPEC and OPEC+ next month, citing the need for flexibility to meet growing global energy demand after recent investments in production capacity. Analysts describe the exit as potentially weakening the cartel, and the move is seen as aligning with US interests under President Donald Trump.