Oil prices continued to climb as a new week began after the United States carried out further airstrikes over the weekend and Iran retaliated by hitting American bases in the region.<\/p>\n
The price of a barrel of Brent crude crept up another half a cent to $88.2, while WTI hit $84. Both had been around the $70 mark before the conflict flared up again.<\/p>\n
The FTSE 100 is down 0.3% at 10,566 points to start the week, Asian markets have broadly dipped, while futures are pointing to a mixed start for US indices when trading begins later on Monday.<\/p>\n
Elsewhere, Andy Burnham\u2019s uncontested move into 10 Downing Street is due to be completed today.<\/p>\n
Bond investors and currency markets will be listening very carefully for any policy hints, particularly anything that points to a worsening of the UK\u2019s already-troubled fiscal position.<\/p>\n
Burnham\u2019s selection for Chancellor of the Exchequer is arguably the main event for markets, with Home Secretary Shabana Mahmood expected to get the nod.<\/p>\n
Ten-year gilt yields have crept up to the 5% mark again, while the pound is virtually flat at $1.34.<\/p>\n
Susannah Streeter, chief investment strategist at Wealth Club, said: \u201cThe upsurge in fighting in the Middle East has caused fresh jitters across global markets. Japan\u2019s Nikkei plunged more than 4%, and the uneasiness has spread into Europe.<\/p>\n
\u201cLondon\u2019s FTSE 100 has opened lower as fresh worries about tense geopolitics and higher energy prices collide with the uncertainty surrounding the new Burnham administration, and what future policy direction will mean for the UK economy.<\/p>\n
\u201cBrent crude has set off on a hot streak, trading around $90 a barrel as military action has intensified between the US and Iran. That\u2019s an increase of 30% from lows seen earlier in the month.<\/p>\n
\u201cAlready the latest attacks have expanded beyond military targets, with bridges, utilities, and port facilities coming under attack, and the countdown is on to an even wider escalation, given that President Trump has vowed to increase attacks on Iranian infrastructure on Wednesday,\u201d Streeter continued.<\/p>\n
\u201cThis could trigger further retaliation, ensnaring the region in an even more complex situation.\u201d<\/p>\n