Trump has hit back, insisting Iran is still interested in a deal, and claimed Iranian negotiators feared being killed by their own side.<\/p>\n
9am UPDATE: Brent crude is up 3.3% to $105.50 a barrel, a day after dropping amid hopes of a ceasefire breakthrough<\/a>.<\/p>\n Victoria Scholar, head of investment at interactive investor, explains:<\/p>\n double quotation markOil prices are staging gains with brent crude up sharply reflecting the reduced likelihood of an immediate ceasefire after Iran\u2019s foreign minister said he was reviewing a US proposal but that there was no intention to hold talks to end the conflict.<\/p>\n Meanwhile President Trump said the US would hit Tehran harder if Iran fails to back down and argues that Iran wants a deal \u2018badly\u2019. US futures are pointing lower, on track to give back some of yesterday\u2019s gains as investors continue to keep a close eye on US-Iran headlines.\u201d<\/p>\n Ipek Ozkardeskaya, senior analyst at Swissquote<\/a>, says it is too early for investors to \u2018price out\u2019 the Iranian war, given the risk that the conflict continues.<\/p>\n double quotation markDonald Trump insists that peace negotiations are ongoing, describing developments in the Middle East as \u201cbig\u201d, but he is no longer controlling the narrative. One of Iran\u2019s senior military figures mocked the US, saying: \u201cHas the level of your inner struggle reached the stage of you negotiating with yourself?\u201d This reflects where we stand in negotiations.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.21 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n A prolonged Iran war could bring German economic growth to a near-standstill this year, a leading economic research institute has warned.<\/p>\n The D\u00fcsseldorf-based Macroeconomic Policy Institute (IMK) said has estimated that if the conflict in the Middle East drags on or escalates, Germany\u2019s gross domestic product would grow by just 0.2%<\/p>\n Back in December, IMK economists had projected growth of 1.2% for 2026.<\/p>\n Share<\/a><\/p>\n Next\u2019s warning on rising costs could be echoed by other retailers in the weeks ahead.<\/p>\n Chris Beauchamp, chief market analyst at IG says:<\/p>\n double quotation mark\u201cToday\u2019s figures from Next contain a hint that the rise in fuel costs is bound to extend beyond increases at the pumps. The retailer\u2019s decent figures underline another good period of performance, but the group highlighted the possibility of price rises should the conflict in Iran go on for longer than a few weeks.<\/p>\n This kind of update is all we have to go on until UK March inflation comes through in late April. After a strong start to the year, Next and other retailers are facing tougher times, just like UK consumers.\u201d<\/p>\n Share<\/a>Next shares jump after profit forecast upgrade<\/p>\n Next\u2019s shares have jumped by over 6% at the start of trading, despite its warning that three months of disruption from the Middle East conflict would cost it \u00a315m.<\/p>\n Investors are impressed that Next has lifted its pre-tax profit guidance for the year to January 2027 by 4.5% to \u00a31.21bn.<\/p>\n The company also reported a 14.5% increase in profit in the last financial year, to \u00a31.158bn.<\/p>\n Share<\/a>Markets drop amid doubts over US-Iran peace deal<\/p>\n European stock markets have opened lower, as hopes of a peace talk breakthrough in the Middle East fade.<\/p>\n In London, the FTSE 100 share index has dropped by 64 points, or 0.63%, in early trading, to 10,042 points. Mining companies, a gauge of economic growth prospects, are among the top fallers on the index with copper producer Antofagasta down 3.9%.<\/p>\n Jim Reid, market strategist at Deutsche Bank, says:<\/p>\n double quotation markFor markets, the issue is there\u2019s still plenty of doubt about whether a US-Iran deal can be reached, given how Iran have publicly rejected the US on several occasions. So that\u2019s seen markets become increasingly sceptical about positive headlines from the US side, because we haven\u2019t seen similar noises from Iran.<\/p>\n Germany\u2019s DAX dropped by 0.9% at the open in Frankfurt, with France\u2019s CAC 40 down 0.65% in Paris.<\/p>\n Share<\/a><\/p>\n Zoe Gillespie, investment manager at RBC Brewin Dolphin, has pointed out that the scale of the problem at NS&I remains unclear.<\/p>\n Gillespie told Radio 4\u2019s Today Programme:<\/p>\n double quotation mark\u201cThe NS&I is currently working through a \u00a33bn modernisation programme which is years behind, so there appears to be some issues with potential tech or customer service problems.\u201d<\/p>\n Complaints against NS&I include that the state-owned bank withheld Premium Bond prizes from the families of deceased savers, with some reporting the bank delayed payments and lost track of investments.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.00 EDT<\/p>\n NS&I set to ‘pay millions’ over savings failures<\/p>\n National Savings and Investments (NS&I) is under rising pressure today after being accused of losing track of investments, delaying payouts and withholding premium bond prizes<\/a> owed to bereaved families.<\/p>\n NS&I has apologised anyone who has not received the customer service \u201cthey should expect\u201d following a bereavement.<\/p>\n This follows reports that some families have incurred thousands of pounds in additional costs trying to recover their money from NS&I, or even paid fines to HM Revenue and Customs after receiving duff information from the UK\u2019s savings bank.<\/p>\n The Daily Telegraph has reported <\/a>that some bereaved family members have received letters incorrectly addressed to their dead relatives, creating more stress and grief.<\/p>\n An NS&I spokesperson said:<\/p>\n double quotation mark\u201cWe recognise that dealing with bereavement can be challenging and would like to apologise to anyone who has not received the customer service from NS&I that they should expect, particularly at such a sensitive time.\u201d<\/p>\n According to the BBC, NS&I is expected to pay hundreds of millions of pounds for mis-managing customers\u2019 money, with pensions minister Torsten Bell expected to address the issue in a statement in the House of Commons as soon as today.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.39 EDT<\/p>\n Oil rising after Iran rejects Trump peace proposal<\/p>\n The oil price is rising this morning, after Iran rejected a US ceasefire proposal last night.<\/p>\n Tehran rebuffed Donald Trump\u2019s 15-point plan to end the war<\/a>, calling it \u201cextremely unreasonable\u201d.<\/p>\n Trump has hit back, insisting Iran is still interested in a deal, and claimed Iranian negotiators feared being killed by their own side.<\/p>\n 9am UPDATE: Brent crude is up 3.3% to $105.50 a barrel, a day after dropping amid hopes of a ceasefire breakthrough<\/a>.<\/p>\n Victoria Scholar, head of investment at interactive investor, explains:<\/p>\n double quotation markOil prices are staging gains with brent crude up sharply reflecting the reduced likelihood of an immediate ceasefire after Iran\u2019s foreign minister said he was reviewing a US proposal but that there was no intention to hold talks to end the conflict.<\/p>\n Meanwhile President Trump said the US would hit Tehran harder if Iran fails to back down and argues that Iran wants a deal \u2018badly\u2019. US futures are pointing lower, on track to give back some of yesterday\u2019s gains as investors continue to keep a close eye on US-Iran headlines.\u201d<\/p>\n Ipek Ozkardeskaya, senior analyst at Swissquote<\/a>, says it is too early for investors to \u2018price out\u2019 the Iranian war, given the risk that the conflict continues.<\/p>\n double quotation markDonald Trump insists that peace negotiations are ongoing, describing developments in the Middle East as \u201cbig\u201d, but he is no longer controlling the narrative. One of Iran\u2019s senior military figures mocked the US, saying: \u201cHas the level of your inner struggle reached the stage of you negotiating with yourself?\u201d This reflects where we stand in negotiations.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.21 EDT<\/p>\n Next: Costs have been offset by savings elsewhere, but….<\/p>\n In the short term, Next says the \u00a315m of additional costs if the Middle East crisis lasts three months have been offset by savings elsewhere, so they do not affect its guidance.<\/p>\n However, if those costs persist beyond the next three months, the company will begin to pass costs through as higher pricing.<\/p>\n Today, that is \u201ca contingency not a plan\u201d, but it\u2019s a sign that the economic damage from the conflict will increase, the longer it goes on.<\/p>\n \u00a315m isn\u2019t a massive hit for Next, which expects to make pre-tax profits of \u00a31.21bn this financial year.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.24 EDT<\/p>\n Next: Three-month Middle East conflict would cost us \u00a315mNext\u2019s store on Oxford Street in London, United Kingdom. Photograph: Mike Kemp\/In Pictures\/Getty Images<\/p>\n The Middle East crisis is expected to cost UK retail chain Next millions of pounds, and could hurt its sales the longer the conflict continues.<\/p>\n Next has told the City this morning that it has accounted for \u00a315m of additional costs that are likely to arise from the conflict, such as fuel and air freight, on the assumption that the disruption lasts for three months.<\/p>\n The company also warns that if the conflict persists, the costs are likely to be reflected in higher prices to consumers and disruption to its supply chain, which will both hurt its sales.<\/p>\n Next says the conflict may restrain growth in the Middle East, which makes up around 6% of its total turnover. It is also likely to have \u201cknock-on effects on costs, selling prices and consumer demand in the rest of the business\u201d, Next points out, adding:<\/p>\n double quotation markAt this point, the longer term implications of the conflict are uncertain, and NEXT is not well placed to make predictions.<\/p>\n As yet, we have no feel for the medium-term effects on supply chain resilience, freight rates, factory gate prices and consumer demand. Much will depend on how long the conflict persists, and how much permanent damage is done to the world\u2019s energy infrastructure.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.11 EDT<\/p>\n The money markets continue to price in at least two rises in UK interest rates by the end of the year.<\/p>\n The money markets indicate Bank rate will have risen by 64 basis points (0.64 percentage points) by December, which implies two quarter-point hikes are fully priced in.<\/p>\n Share<\/a>UK consumer confidence has \u2018collapsed\u2019 during Iran war, retail industry says Consumer confidence in the UK has \u201ccollapsed\u201d since the start of the Iran war, according to new research from the British Retail Consortium.<\/p>\n The sharp rise in energy prices caused by the effective closure of the strait of Hormuz and attacks on infrastructure in the region has led to fears of higher inflation and weaker growth across oil-importing countries.<\/p>\n Asked about the state of the UK economy over the next three months, 64% of respondents told a survey they expected it to get worse. Just 11% thought it would get better. The resulting balance of -53% was sharply lower than the -20% reading a month earlier.<\/p>\n Share<\/a>Introduction: Average UK mortgage rate hits 5.50% for the first time since August 2024<\/p>\n Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n The UK\u2019s cost of living squeeze is tightening by the day, as the Iran war sends inflationary pressures rippling through the global economy.<\/p>\n The average UK mortgage rate has now hit 5.50%, data from Moneyfacts shows. That\u2019s the highest rate since August 2024, as lenders have scrambled to reprice mortgage products as hopes of UK interest rate cuts this year have faded.<\/p>\n This means the typical annual cost of borrowing \u00a3250,000 over 25 years has risen by more than \u00a31,075 per year \u2013 anyone looking to buy or remortgage this year needs to prepare for substantially higher costs than previously expected.<\/p>\n![\"Heather](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/1774516928_448_Heather_Stewart,_L.png\")
Heather Stewart<\/p>\n