Oil and gas prices increased substantially on Thursday, while stock markets fell after Iranian strikes targeted Middle Eastern energy infrastructure, including Qatar’s largest gas station. Brent crude was trading at slightly over $108 a barrel on Thursday evening, after reaching as high as $119 earlier in the day.
UK gas prices were 154.8p per therm, up 11.3% from the day before. On Thursday, they peaked at around 183p. The FTSE 100 closed at 10,049, down 256 points or 2.4%, as investors grow increasingly anxious about the economic impact of a prolonged battle.
Bonds sank on both sides of the Atlantic as fears of rising inflation persisted. The United Kingdom is significantly reliant on imported natural gas, and the spike in British gilt yields on Thursday was far steeper than for German or US bonds.
Bonds are essentially government debt; the buyer finally receives the bond’s value plus interest, or yield, at regular intervals. UK bonds, known as gilts, are mostly purchased by financial organizations such as pension funds because they are perceived as a relatively safe investment. Rising bond yields typically indicate that investors are concerned about economic turmoil when the government incurs further debt.
Also Read:
Anthony Penwright | A Strategic Force Behind Global Smart City and Digital Programs
