Susannah Streeter, chief investment strategist at Wealth Club, said markets were remaining “cautious given the twists and turns during this conflict”.<\/p>\n
Despite the sharp fall in crude, “there is still significant uncertainty baked into these prices and a reticence about whether negotiations will lead to a lasting breakthrough,” she added.<\/p>\n
The conflict between the US and Iran – and its impact on oil – has pushed up the cost of fuel such as petrol and diesel in many countries.<\/p>\n
This often has knock-on effects on other prices, such as food, as businesses pass on the higher costs they are facing to customers, and this can push up the rate of inflation.<\/p>\n
Higher inflation raises the possibility that central banks will increase interest rates in an attempt to keep price rises under control.<\/p>\n
In June, the European Central Bank opted to lift its key interest rate for the eurozone for the first time in almost three years, noting that the conflict was “generating inflation pressures”.<\/p>\n
Before the Iran war began, there had been expectations that the Bank of England would cut rates this year.<\/p>\n
However, no cuts are now expected and financial markets are currently predicting a rate rise towards the end of the year.<\/p>\n
The Bank of England holds its latest interest rate-setting meeting this week, when it is expected to keep its key rate unchanged at 3.75%.<\/p>\n","protected":false},"excerpt":{"rendered":"Susannah Streeter, chief investment strategist at Wealth Club, said markets were remaining “cautious given the twists and turns…\n","protected":false},"author":2,"featured_media":713519,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-713518","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/713518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=713518"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/713518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/713519"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=713518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=713518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=713518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}