The US and Iran exchanged fire again, straining an already fragile ceasefire and pushing oil prices up.
US President Donald Trump said Iran would “pay the price” for not making a deal, while Tehran declared the Strait of Hormuz closed once more and said it had hit two oil tankers in the channel. Trump said that the US military had escorted ships carrying 100 million barrels of oil through the strait, but that is just five days of normal throughput.
Brent crude jumped overnight, with higher global energy prices driving inflation and monetary policy: Markets are pricing in a European Central Bank rate hike today, and now expect at least one Federal Reserve rate increase by year-end.