Donald Trump said the US has held “productive discussions” with Iran and would not attack the country before the midterm elections, easing fears of Middle East supply disruptions. Brent crude edged down to around $103 a barrel, though it remained supported after earlier tanker attacks in the Strait of Hormuz. UK gilt yields climbed again, adding pressure to government borrowing costs and the Treasury’s fiscal headroom.

Brent crude surged above $102 per barrel after reports said the Trump administration instructed the Pentagon to develop strike options against Iran that could be carried out before the midterm elections. Rising geopolitical tensions in the Middle East intensified fears of oil supply disruptions.

Brent crude, the international oil benchmark, rose above $101 per barrel on Wednesday morning after tanker attacks in the Strait of Hormuz intensified in recent days. The UK Maritime Trade Operations has logged nine incidents so far this month. A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched by the Houthis toward Khamis Mushait in Saudi Arabia. Rising Middle East tensions offset an increase in supply, lifting oil prices.

HSBC is facing losses of more than £17m tied to the administration of craft brewer Brewdog. Brewdog was sold in March to US cannabis group Tilray Brands for £30m. Administrators at AlixPartners said HSBC is owed £31.2m as a secured creditor and expects to recover about £14.5m, while the bank’s equipment finance unit also faces a loss of about £523,486.

UK blue-chip stocks fell sharply on Thursday after US inflation data weighed on risk appetite, even as Nvidia reported strong sales. Headline US inflation eased, but the Federal Reserve’s preferred PCE price index remained elevated at 3.7%. The reading fuelled concerns that monetary policy could stay tight for longer, pressuring equities.

A 60-day ceasefire memorandum of understanding between the US and Iran expired on Monday, and Donald Trump said he would not extend it. Brent crude rose above $91 per barrel amid heightened geopolitical tensions. Supply risks around the Strait of Hormuz remained in focus as the standoff continued.

The UK’s Financial Conduct Authority has suspended parts of its £9bn motor finance redress scheme in response to legal challenges from Volkswagen Financial Services, Mercedes Benz Financial Services and Crédit Agricole Auto Finance. The pause means captive lenders do not have to notify consumers by January 2027 that complaints will be rejected, nor calculate or pay compensation while the case is ongoing. The move follows an Upper Tribunal order, with hearings expected to run as late as February 2027, according to the FCA.