Stocks tumble and oil nears $110 as Trump vows fresh attacks on Iranian energy sites
Stocks are back in the red and oil is climbing above $107 again, as hopes for a swift end to the war were dashed overnight. The FTSE 100 opened down 0.7 per cent, or 70 points, to 10,291, before recovering somewhat by 10am to trade down 17 points. Meanwhile, UK borrowing costs started to inch higher as Trump indicated another escalation in the war with Iran. The UK's ten-year gilts rose 7 basis points to 4.9 per cent at the open, after falling to as low as 4.78 per cent on Wednesday. European stocks are also nursing losses, with Germany's Dax down 1.5 per cent, while France's Cac fell 1.2 per cent, following sharp falls in Asian stocks overnight.Markets had rallied on Wednesday ahead of Trump's address to the nation, before recoiling as he vowed to hit Iran 'extremely hard' in the next few weeks.Trump also suggested the war could escalate if Iranian leaders did not give in to the US terms and could launch fresh strikes on Iran's energy and oil infrastructure. Latest escalation: Trump has offered investors little reassurance that the war will end soonBrent crude jumped 5 per cent to around $106 after the address, as investors were left with little indication of a timeline for exit. Oil is now up to nearly $108 this morning.There are also mounting concerns about the impact of a prolonged closure of the Strait of Hormuz, through which a fifth of the world's oil normally passes.Trump offered no reassurance or plan to open the strait and told allies to 'build up courage and grab' the oil because the US does not need the key shipping route. It has offered investors no reassurance that the supply disruption will end quickly.Mining companies led the FTSE's biggest fallers this morning, with Fresnillo and Endeavour Mining shedding over 5.5 per cent as it took a hit from the falling gold price. BP and Shell rose 3.5 and 2.5 per cent respectively on the climbing oil price. Chris Beauchamp, chief analyst at IG said: 'In what might be the most dramatic April Fools' of recent years, Donald Trump did nothing of what was expected in his speech. 'Instead of 'no more war', we got 'no, more war!', with heavier strikes expected and a fresh warning of attacks on power plants.'This leaves markets back where they were last week, and now we have to price in hundreds of millions of barrels of oil that aren't coming out any time soon. 'The gloomy predictions of last week would have been perhaps misplaced if Trump had signalled a quick end, but now markets are back to pricing in economic catastrophe.'Fresh data shows that a third of businesses have flagged the war as having a significant impact on supply chains over the next year, while 21 per cent are concerned about the impact of shipping disruption. A survey by the Office for National Statistics found that more than half of firms with 10 or more employees expect costs to rise over the next year, with a similar proportion worried about energy prices. DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Stocks tumble and oil nears $110 as Trump vows fresh attacks on Iranian energy sites
