Oil prices surged more than 3% on Monday as the United States and Iran exchanged attacks in the Gulf region. Brent crude rose 3.5%, or $2.66 a barrel, to $78.66, reflecting heightened geopolitical risks in the strategic waterway.
Market reactions across the globe
US stocks broadly fell, with the S&P 500 slipping 0.2% and the Nasdaq dropping 0.8%, while the Dow Jones gained 0.4%. European markets posted modest gains, mirroring a mixed session for equities.
The FTSE 100 in London edged 11 points, or 0.1%, higher to 10,507, supported by energy stocks such as BP and housebuilders like Persimmon. Speculation swirled that UK prime minister-in-waiting Andy Burnham could revive the help-to-buy scheme, which has previously boosted housebuilder sales and profits.
Gold and currency movements
Gold prices fell nearly 2% to $4,037 an ounce as investors rotated away from safe havens. The pound slipped 0.17% against the dollar to $1.3381 amid a pivotal week in UK politics, with Burnham expected to be elected Labour leader on Friday and become prime minister next Monday.
Other key stories
In other news, China faces a graduate glut as millions enter a job market with limited opportunities. The World Cup quarter-final is projected to generate a £500 million sales boost for the UK economy. Struggling pub landlords have been given a lifeline by England's World Cup heroes. Analysts warn that a 'Super' El Niño could cause a global food price shock lasting into 2028. Britons are increasingly favoring colored and vine tomato varieties over classic round tomatoes. The coffee industry faces inflationary pressures, with a flat white now costing £6.50.
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