Iran conflict could have ‘very significant’ impact on UK economy, OBR warns; FTSE 100’s biggest fall in 11 months – as it happened

Time to wrap up….Rachel Reeves insisted Labour has “the right economic plan” for a world that has become “yet more uncertain” as she delivered a spring forecast that downgraded growth for this year.The chancellor was addressing MPs against the backdrop of surging energy prices, as investors fret about the impact of the war in the Middle East.Reeves said she was in close touch with the Bank of England governor, Andrew Bailey, as they monitored the situation and would meet representatives of the North Sea energy industry on Wednesday.New forecasts from the independent Office for Budget Responsibility (OBR), published alongside her statement, showed that as Reeves said, “inflation is down, borrowing is down, living standards are up and the economy is growing”

China calls for vessels in strait of Hormuz to be protected amid soaring shipping costs

The Chinese government has called for vessels passing through the strait of Hormuz to be protected by all sides in the escalating Iran conflict, as shipping freight rates soared.Maritime traffic through the strait – a narrow channel on Iran’s southern border that connects the Persian Gulf with the Gulf of Oman – has effectively been closed since the US and Israel launched missile attacks on Iran at the weekend, prompting a retaliation from Tehran.Beijing’s foreign ministry on Tuesday urged “all parties to immediately cease military operations, avoid escalating tensions and safeguard the safety of navigation in the strait of Hormuz”.China is the world’s largest importer of oil and fossil gas and has in recent times been the major buyer of Iranian oil, making it one of the countries most exposed to the interruption to energy shipments.The strait of Hormuz, located on Iran’s southern border, is one of the most important global trade arteries and remained devoid of ships for a fourth day on Tuesday

Stock markets slump amid Iran war as gas prices jump 30% to three-year high

The war in the Middle East has plunged financial markets around the world into turmoil for a second day, with oil and gas prices surging and share indices plummeting days after the US-Israel attack on Iran.After a calm Monday, US stocks fell sharply after trading opened on Tuesday, with the Dow dropping more than 2% before paring back those losses. At Tuesday’s closing, the Dow had dropped 400 points, or 0.8%, while S&P and Nasdaq saw similar dips.Earlier in the day, the London stock market dropped deep into the red, with the FTSE 100 index closing 2

Surprise jump in UK grocery inflation makes interest rate cut less probable

Shoppers faced a surprise jump in grocery inflation last month, as experts warned there was worse to come if there was prolonged war in the Middle East and the odds of a UK interest cut fell sharply.In a blow to households struggling with the cost of living, grocery price inflation rose to 4.3% in the four weeks to 22 February, after falling to 4% in January from 4.7% in December, according to the market research company Worldpanel by Numerator.The European Central Bank’s chief economist, Philip Lane, also warned that prolonged war in the Middle East could lead to lower oil and gas supplies from the region, causing a “substantial spike” in inflation and a “sharp drop in output” in the eurozone

‘Peak Greggs’? Bakery chain’s profits slump and sales slow

Greggs has reported a slump in profits as it bemoaned “challenging” market conditions hitting consumer confidence and disposable income, amid pressure to prove the UK has not hit “peak Greggs”.The high street bakery chain, known for its sausage rolls and steak bakes, said statutory pre-tax profits fell by 17.9% to £167.4m for the year to 27 December, compared with a year earlier. Total sales rose by 6

US markets see-saw as investors keep close eye on Iran war

US stocks see-sawed on Monday as investors tried to keep abreast of the news on the first day of trading since the US and Israel attacks on Iran began.After dipping down over 1% across the board, the major indexes recovered most of their losses even after global markets saw heftier drops earlier in the day. At Monday’s closing, the Dow was down 0.15%, while the S&P 500 was 0.04% up