UK and European stock markets rose despite Middle East conflict concerns.
- Mar 4
- 1 min read
4 March 2026
Tags: Business, Economy, Energy, Markets
Why this matters:Energy supply disruptions could raise inflation and delay expected UK interest rate cuts. Global shipping instability affects fuel prices and economic growth.
UK and European stock markets rose despite Middle East conflict concerns.
FTSE 100 edged higher; Asian markets fell for third consecutive day.
Brent crude rose 15% since US-Israel strikes on Iran began.
Oil traded around $83.50 a barrel after refinery drone attack in Saudi Arabia.
QatarEnergy suspended LNG production amid regional instability.
Gas prices volatile, hovering near 127p per therm.
Shipping through Strait of Hormuz largely halted after Iranian threats.
Around 200 tankers stranded; insurance premiums increased significantly.
Analysts warn sustained energy prices could add about 1% to UK inflation.
Economists say prolonged disruption may affect UK interest rate plans.
What’s next:The Bank of England will announce its interest rate decision on 19 March. Markets are closely monitoring oil flows and diplomatic developments.
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