![\"\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/07\/Trump-at-Ankara-Nato-summit.png\")
Oil prices resumed their upward surge after Donald Trump ordered fresh overnight missile strikes on Iran.<\/p>\n
Brent crude was trading as much as 7% higher at $78.89 and government borrowing costs rose sharply after the President dismissed the recently signed memorandum of understanding as a \u201cwaste of time.\u201d<\/p>\n
The ceasefire had seen the price of oil fall back and helped encourage expectations of a return to stability of supplies. <\/p>\n
That changed after Iran attacked three commercial vessels transiting the Strait of Hormuz on\u00a0Tuesday, prompting retaliatory attacks by the United States.<\/p>\n
Speaking at the\u00a0Nato\u00a0summit in Ankara, Turkiye, the president said of the Iranian regime: \u201cIt\u2019s just a waste of time dealing with them, they\u2019re liars.<\/p>\n
\u201cI don\u2019t want to deal with them any more, they\u2019re scum. You know what scum is? They\u2019re scum. They\u2019re sick people. They\u2019re led by sick people. And they\u2019re vicious, violent people. And if they had a nuclear weapon, they\u2019d use it. As far as I\u2019m concerned, it\u2019s over.\u201d<\/p>\n
On the prospect for the negotiations, he said: \u201cThey can talk, but I think they\u2019re wasting their time.\u201d<\/p>\n
The yield on the benchmark ten-year UK government bond increased 0.11 percentage points to 4.97%. The pound fell 0.14% against the dollar to $1.33 before stabilising and rose 0.15% against the euro to \u20ac1.17.\u00a0<\/p>\n
European stock markets fell. The FTSE 100 index was 1.7% lower and the mid-cap FTSE 250 index dipped by 1.5%. Germany\u2019s Dax index fell 2.23% and France\u2019s Cac 40 lost 2.18%.<\/p>\n
All three of Wall Street\u2019s main stock indices opened sharply lower but by the close of the mid-week session in New York, the tech-heavy Nasdaq closed marginally higher with a gain of 0.2% while the S&P 500 shed 0.7%. The Dow Jones industrial average was 1.1% lower.<\/p>\n
Dan Coatsworth, head of markets at AJ Belll, said: \u201cThe news has caught the market off guard, leading to share prices flashing red and oil price hikes restoking the inflation debate.<\/p>\n
\u201cInterest rate expectations quickly shifted, with markets now thinking the Fed could raise rates in September or October rather than the earlier suggestion of December.<\/p>\n \u201cThis renewed backdrop of uncertainty adds to existing market jitters around excessive spending and valuations in the AI space. It also didn\u2019t help that the IMF downgraded its global growth forecast and raised its inflation forecast for 2026. The combination of these events resulted in a miserable session for investors.<\/p>\n \u201cThe FTSE 100 didn\u2019t fare as badly as its European peers thanks to support from BP and Shell which benefit from the higher oil price. The only other bright spots on the UK markets were insurers, utilities and grocers.\u201d<\/p>\n British Airways\u2019 parent company International Consolidated Airlines was a faler on the prospect of fuel costs going back up and more travel disruption. <\/p>\n \u201cThe aviation industry had just started to breathe a sigh of relief, with oil prices coming down and the war reaching a conclusion,\u201d said Mr Coatsworth. \u201cUntil today it looked as if summer had been saved for airlines, and that might still be the case. But the clouds are gathering for autumn and beyond if oil doesn\u2019t come back down.\u201d<\/p>\n \t <\/div>\n![\"British](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2018\/09\/British-Airways-pic.png\")