Oil Prices Take a Wild Spin
Following last night’s drone strikes on three Iranian nuclear sites, oil prices made a full‑tilt jump to their highest level in almost six months. Brent crude now sits around $78 a barrel as investors brace for Iran’s possible next move.
UK Stocks Get a Quick Boost
- BP shares nudged up 1.1%.
- Shell climbed 0.8%.
- The FTSE 100 stayed steady, holding a modest gain of 2.9 points at 8,777.6.
What If the Strait of Hormuz Closes?
Joachim Klement from Panmure Liberum raises alarms: “If the Strait of Hormuz gets shut, we could see a dramatic stagflation shock similar to 2022. A 10‑20% market correction is likely, and we might face a new bear market if the trade war heats up again early in July.”
He also notes that a mere disruption—without a full shutdown—will still trigger a noticeable inflation shock, but it shouldn’t derail the economies of the US, UK, or Eurozone for long.
According to Klement, the initial correction could be a 5‑10% dip in stock markets. How deep and sustained that correction turns out to be will hinge largely on how the trade war evolves over the next couple of weeks.
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