![\"Breaking](\"https:\/\/www.europesays.com\/iran\/wp-content\/uploads\/2026\/07\/01KWYDZTD24VN38HE8V1GZGTEA.jpeg\")
\t\tTrump called Iran’s leadership ‘cuckoo’ (Image: PA)\t<\/p>\n\t\t\tWednesday 08 July 2026 10:49 am\n\t\t\t<\/p>\n
\t\tTrump called Iran’s leadership ‘cuckoo’ (Image: PA)\t<\/p>\n
UK borrowing costs surged<\/a> and the price of oil leapt to a two week-high on Wednesday after Donald Trump suggested his already-fragile ceasefire deal with Iran was over.\u00a0<\/p>\n The yield on ten-year gilts \u2013 the primary benchmark for how much it costs the government to borrow \u2013 stormed 11 basis points higher to 4.96 per cent after the US launched a \u201cseries of powerful strikes\u201d on Iran.<\/p>\n Brent crude, the international benchmark for oil prices<\/a>, alose rocketed to a two-week high of $78 per barrel, rising from $72 earlier in the week.\u00a0<\/p>\n Whilst it remained well-short of the $120 peak notched at the height of the crisis in May, the elevated price renewed the inflationary fears that had cooled over the last few weeks.<\/p>\n European gas prices rose five per cent to a month-high of \u20ac49 per MWh.<\/p>\n \u201cClearly higher oil prices raises stagflation fears and weighs on the growth outlook,\u201d Neil Wilson, investor strategist at Saxo Markets, said.\u00a0<\/p>\n Nato gets Trump\u2019ed<\/p>\n Trump\u2019s diatribe against Iran has dominated the Nato summit taking place in Turkey this week.<\/p>\n The US President said he didn\u2019t \u201cwant to deal\u201d with Iran anymore and branded the talks a \u201cwaste of time\u201d. He labelled the leadership of Iran \u201ccuckoo\u201d.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tFTSE 100 Live: Stocks slump as oil soars; Trump hits out at \u2018cuckoo\u2019 Iran<\/a><\/p>\n Wilson said the remarks had \u201csent sparks flying\u201d and \u201cunderscored fears that we could see further escalation\u201d.<\/p>\n Mark Rutte, the head of Nato, defended the US\u2019 latest round of strikes as \u201cabsolutely necessary\u201d. Iran has hit back, targeting 85 US military sites across Bahrain and Kuwait.<\/p>\n The US and Iran had agreed to a memorandum of understanding<\/a> on 17 June, which paused military action for 60-days as they negotiated a lasting peace deal.<\/p>\n But thornier matters, such as Iran\u2019s capacity to possess a nuclear weapon and the control over the Strait of Hormuz have continued to provide challenges.\u00a0<\/p>\n The jitters led to investors dumping their equities exposure with the FTSE 100 tumbling 1.5 per cent to 10,501.\u00a0<\/p>\n Susannah Streeter, chief investment strategist at Wealth Club, said the \u201cramp-up in production\u201d from oil producing nations OPEC+ helped \u201ckeep a lid on concerns about a fresh energy<\/a> crunch\u201d.<\/p>\n \u201cNevertheless, it\u2019s a major setback just as nations around the world had been breathing a sigh of relief that a longer-term resolution looked to be within reach.\u201d<\/p>\n Oil majors Shell and BP were the top performers on the FTSE 100 on Wednesday morning, up two per cent and 3.5 per cent respectively.<\/p>\n \t\t\t\t\tRead more<\/p>\n