Thursday 13 August 2026 6:46 am
| Updated:
Thursday 13 August 2026 7:17 am
Welcome back to City AM’s FTSE 100 live blog (Jacquelyn Martin via AP/PA Images)
Welcome back to City AM liveblog.
Oil prices are hovering around the $88 per barrel mark as investors asses the conflicting rhetoric over the Strait of Hormuz.
President Donald Trump said the US had “total control” over the narrow waterway as negotiations remain in deadlock.
But Iran has pushed back on these claims with the nation’s Persian Gulf Strait Authority stating “the Strait of Hormuz remains blocked,” adding it will not be opened until Iran’s conditions are accepted.
“The successive claims and tweets by American officials about lifting the blockade of the Strait of Hormuz do not change reality,” it said on X.
Trump had earlier said that “praise be to Allah”, Washington has “total control over the Strait of Hormuz”, adding: “I THINK WE WILL KEEP IT!”
It follows reports that Treasury officials have briefed the Prime Minister that the UK economy will barely grow next year if disruption to the Strait of Hormuz linked to the Iran war continues until the end of 2026.
Read more
Internal modelling from the Treasury suggests UK GDP could see growth as low as 0.3 per cent in 2027, according to Bloomberg.
The forecast suggested UK economy could grow by 0.9 per cent this year if there is no permanent peace deal between the US-Israeli forces and Iran.
That would miss the 1.1 per cent prediction from the Office for Budget Responsibility (OBR) earlier this year. The OBR had also pencilled in 1.6 per cent GDP growth in 2027.
The more extreme scenario also indicated that Consumer Price Index (CPI) inflation could peak at 4.3 per cent in the first quarter of next year, with disruption in the Strait of Hormuz likely to keep oil and gas prices elevated.
On Wednesday, the global energy watchdog warned oil stockpiles were “rapidly depleting”.
We’ll be bringing you the latest market updates and analysis.
Here’s a few of our top headlines this morning
Read more
As it happened: Stocks rise despite new tensions in Strait of Hormuz; Oil price climbs
The liveblog has ended.
No liveblog updates yet.
Load more
Similarly tagged content:
Sections
Categories
People & Organisations