Time for a recap, after a dramatic day in the financial markets.UK chancellor Rachel Reeves has warned petrol, diesel and heating oil retailers not to take advantage of the surge in oil prices.Updating MPs about the situation, after an alarming surge in oil prices last night, Reeves said she would “continue to monitor prices” at the pumps as the situation develops.She told the House of Commons:double quotation markI have also asked the Competition and Markets Authority to be vigilant across prices, including essentials like road fuel and heating oil.Let me be absolutely clear.

I will not tolerate any company exploiting the current crisis to make excess profits at consumers’ expense,Reeves also reassured households that the UK energy price cap will fall in April, as planned before the Middle East crisis erupted,She was speaking after taking part in a call with fellow G7 finance ministers, where they agreed to stand ready to take necessary measures” to support oil suppliesG7 finance ministers met after the Iran war drove the cost of a barrel of crude to its highest since 2022, over $100 a barrel in frenzied trading as Asia-Pacific markets opened last night,They faced calls to release their emergency oil reserves, but the France’s finance minister has said the G7 are “not there yet”,In a statement, the G7 finance ministers say:double quotation mark“We, the G7 finance ministers, held a virtual meeting on March 9, together with the Heads of the International Monetary Fund (IMF), World Bank Group (WBG), Organisation for Economic Co-operation and Development (OECD), and International Energy Agency (IEA).

“We discussed the current conflict in the Middle East, its impact for regional stability, global economic conditions, and financial markets, and the importance of secure trading routes,“We will continue to closely monitor the situation and developments in the energy markets and will meet as needed to exchange information and to co-ordinate within the G7 and with international partners,“We stand ready to take necessary measures, including to support global supply of energy such as stockpile release,”The G7 statement appeared to calm the financial markets, which had been highly volatile early in the day,Brent crude rocketed to as high as $119.

50 a barrel as the financial markets opened on Sunday night UK time, an astonishing jump of 29%, as the fallout from the US-Israel war with Iran continued to rattle global markets.But crude prices then eased back during afternoon trading today.Brent crude is now changing hands around $99.75 a barrel, still up 7.33% on the day.

The TUC warned that “working people are now facing a Donald Trump-made cost of living crisis”.According to the RAC, UK petrol has risen by 5p to 137.5p a litre since the Iran war began on Saturday 28 February, with diesel is up 9p to 151p a litre.Fears of an inflationary surge hit the price of government bonds today, pushing up the yield (or interest rate) on UK debt, before a late recovery.The yield on two-year UK gilts surged by 36 basis points (0.

36 of a percentage point) at one stage, on track for its biggest daily jump since Liz Truss’s mini-budget alarmed investors in September 2022.But yields eased back in late trading, and were only slightly higher on the day.Hopes that the Bank of England would cut interest rates this year were dashed by the jump in the oil price.The City money markets now indicate the Bank is expected to keep rates on hold through 2026, with a small possibility of a rise in 2027.And finally, the UK’s stock market has clawed back most of its earlier losses.

The FTSE 100 share index has closed for the night, down 35 points at 10,249 points, having been down around 200 points in early trading,Energy companies and defence stocks led the risers, while property developers, housebuilders and retailers fell as hopes of UK interest rate cuts evaporated today,“It’s been tough for investors to figure out how to price in the Trump effect over the past 12 months,” says AJ Bell head of financial analysis Danni Hewson, adding:double quotation mark“For many it has made sense to plump for the ‘TACO’ trade, assuming the US president will pull back or change direction quickly,But after a relatively calm period for markets last week, the rhetoric from both sides in the US-Iran conflict over the weekend will have forced traders to think again,“The US economy and markets will be insulated to a degree by the country’s huge oil and gas industry, but it can’t escape soaring prices entirely, or the growing spectre of stagflation which is stalking the global economy.

“For central banks, the only way may be up when it comes to interest rates – a huge pivot from where markets had expected them to go in 2026.“Preventing inflation from reaching those scorching hot levels that would annihilate already fragile consumer confidence will trump a desire to curb unemployment or charge up economic growth.Time for a recap, after a dramatic day in the financial markets.UK chancellor Rachel Reeves has warned petrol, diesel and heating oil retailers not to take advantage of the surge in oil prices.Updating MPs about the situation, after an alarming surge in oil prices last night, Reeves said she would “continue to monitor prices” at the pumps as the situation develops.

She told the House of Commons:double quotation markI have also asked the Competition and Markets Authority to be vigilant across prices, including essentials like road fuel and heating oil,Let me be absolutely clear,I will not tolerate any company exploiting the current crisis to make excess profits at consumers’ expense,Reeves also reassured households that the UK energy price cap will fall in April, as planned before the Middle East crisis erupted,She was speaking after taking part in a call with fellow G7 finance ministers, where they agreed to stand ready to take necessary measures” to support oil suppliesG7 finance ministers met after the Iran war drove the cost of a barrel of crude to its highest since 2022, over $100 a barrel in frenzied trading as Asia-Pacific markets opened last night.

They faced calls to release their emergency oil reserves, but the France’s finance minister has said the G7 are “not there yet”.In a statement, the G7 finance ministers say:double quotation mark“We, the G7 finance ministers, held a virtual meeting on March 9, together with the Heads of the International Monetary Fund (IMF), World Bank Group (WBG), Organisation for Economic Co-operation and Development (OECD), and International Energy Agency (IEA).“We discussed the current conflict in the Middle East, its impact for regional stability, global economic conditions, and financial markets, and the importance of secure trading routes.“We will continue to closely monitor the situation and developments in the energy markets and will meet as needed to exchange information and to co-ordinate within the G7 and with international partners.“We stand ready to take necessary measures, including to support global supply of energy such as stockpile release.

”The G7 statement appeared to calm the financial markets, which had been highly volatile early in the day.Brent crude rocketed to as high as $119.50 a barrel as the financial markets opened on Sunday night UK time, an astonishing jump of 29%, as the fallout from the US-Israel war with Iran continued to rattle global markets.But crude prices then eased back during afternoon trading today.Brent crude is now changing hands around $99.

75 a barrel, still up 7.33% on the day.The TUC warned that “working people are now facing a Donald Trump-made cost of living crisis”.According to the RAC, UK petrol has risen by 5p to 137.5p a litre since the Iran war began on Saturday 28 February, with diesel is up 9p to 151p a litre.

Fears of an inflationary surge hit the price of government bonds today, pushing up the yield (or interest rate) on UK debt, before a late recovery,The yield on two-year UK gilts surged by 36 basis points (0,36 of a percentage point) at one stage, on track for its biggest daily jump since Liz Truss’s mini-budget alarmed investors in September 2022,But yields eased back in late trading, and were only slightly higher on the day,Hopes that the Bank of England would cut interest rates this year were dashed by the jump in the oil price.

The City money markets now indicate the Bank is expected to keep rates on hold through 2026, with a small possibility of a rise in 2027,Working people are now facing a “Donald Trump-made cost of living crisis”, TUC General Secretary Paul Nowak has warned,Following Rachel Reeves’s statement to parliament, after the (partly unwound) surge in oil today, Nowak says:double quotation mark“It’s right that the Chancellor calls for deescalation and recognises the real threat to households and industry up and down the country,“While household energy bills are stable for now, it’s clear that Trump’s war threatens living standards with other costs like petrol and mortgage rates already rising,“The government must stand ready to pull out all the stops and shield households and firms from this global shock.

”Reeves adds that she recognises that households who use heating oil face “unique challenges”.[That’s because heating oil is not covered by the Ofgem price cap].The chancellor tells MPs that the Financial Secretary to the Treasury will lead discussions with officials and with rural and Northern Irish MPs to explore further action that we can take, with meetings happening on Wednesday.Rachel Reeves also reassured consumers that despite the recent movements in energy prices, the price cap for domestic bills for April will not change.That means that the average energy bill for millions of households will fall by £10 a month in the spring, because Ofgem announced a 7% cut in the price cap, bringing down the average annual dual-fuel bill to £1,641in April-July, from £1,758 todau.

Reeves says this will give families “immediate certainty on their bills until at least the end of June”.Rachel Reeves has warned petrol retailers not to take advantage of the crisis by ripping off customers.She tells MPs that she will meet with petrol forecourt operators this week, and warns that she will “not hesitate” to call out retailers who don’t provide data to the UK’s fuel price tracker.Reeves tells the House of Commons that she has asked the UK’s competition watchdog to monitor the sitation.double quotation markI am clear that the best way to keep prices at the pump low is rapid de-escalation, and I will continue to monitor prices as the situation develops.

I have also asked the Competition and Markets Authority to be vigilant across prices, including essentials like road fuel and heating oil.Let me be absolutely clear.I will not tolerate any company exploiting the current crisis to make excess profits at consumers’ expense.[Reminder, the RAC has calculated that UK petrol has risen by 5p to 137.5p a litre since the Iran war began on Saturday 28 February.

Diesel is up 9p to 151p a litre,]Rachel Reeves then tells MPs that she set out her priorities for the international cooperations we need to see to ease the Middle East criris, when she spoke with G7 finance ministers,She lists four priorities,First, she calls for immediate de-escalation and a return to the diplomatic process,Secondly, the chancellor says “we must guarantee the security of vessels passing through the Strait of Hormuz”.

Thirdly, the UK chancellor says she stands ready to support a coordinated release of collective International Energy Agency oil reserves.And fourth, Reeves pledges that the UK will “play its part” as the global hub of maritime insurance, adding:double quotation markI am meeting with the chair of Lloyd’s of London later today, where we will discuss how best to support the continued passage of maritime trade.Over in parliament, Rachel Reeves is updating MPs about the government’s preparedness and response to the situation in the Middle East.The chancellor starts by paying tribute to the UK’s armed forces, and expressing concern and sympathy for the British citizens whose lives have been disrupted by the conflict so far.Reeves then pledges to take the necessary decisions to help families with the cost of living and protect the public finances.

She insists she is “clear-eyed” about her response to the situation, promising:double quotation mark“My economic approach will both be responsive to a changing world and responsible in the national interest,”She adds that the economic impact of the situation in the Middle East will depend on its “severity and its duration”,double quotation markThe movements that we have already seen are likely to put upward pressure on inflation in the coming months,But I also want to confirm to the House that our financial markets are functioning, and I’m in regular touch with the governor of the Bank of England,A UK government rescue flight is to bring Britons back from Dubai, PA Media report.

The flight will be the first from the United Arab Emirates (UAE), and comes after a third rescue flight from Oman landed in the UK early on Monday, with more than 200 British nationals on board.About 180 British nationals are expected to leave on the first charter flight out of Dubai, with a further two flights expected this week, at a cost of £500 a seat.UK trade minister Chris Bryant has promised government will unveil new steel safeguards to shore up British industry by 1 April.The safeguards, inherited from the EU, run out in the UK at the end of June with the EU already proposing 50% tariffs and a halving of quota on steel imports.Last week Steel UK said it hoped there would be an announcement by end of March when “purdah” comes into force preventing key announcements being made ahead of May elections.

Bryant was being quizzed about Tata Steel claims saying last month it needed safeguards to be clear within eight weeks.Bryant told the House of Commons select committee.double quotation mark“ I don’t have any intention of disappointing Tata Steel.We can expect an announcement within the next month”He added that he was “absolutely certain there will not be a gap” between the end of safeguards in June and new British rules.UK government borrowing costs, which surged this morning, have slipped back.

Two-year bond yields (which are sensitive to interest rate moves) are now up just 10 basis points (0.1 percentage points), having been over 30bps higher this morning.With oil slipping back below $100 a barrel this afternoon, fears that the Bank of England might raise interest rates are easing.The money markets are now pricing in no change in UK interest rates this year, and only a small possibility of a rise in 2027.Any release of emergency oil by the G7 might not provide more than “temporary relief’, warns Fawad Razaqzada, market analyst at City Index:Razaqzada says:double quotation markRather than easing over the weekend, tensions in the Middle East intensified, and that caused oil to gap sharply higher and stocks and EUR/USD [the euro against the US dollar] lower.

The moves have since unwound a little as investors price in the possibility of a coordinated emergency release of oil reserves by major economies,This is unlikely to provide more than temporary relief, which should keep the US dollar well supported on the dips until there is meaningful progress towards peace in the Middle East,With oil prices soaring and stoking fresh inflation concerns, this is particularly bad news for economic regions that rely on energy imports, such as the Eurozone,This makes the EUR/USD forecast particularly vulnerable as oil prices surge beyond $100 a barrel,The oil price has now dipped back below the $100 a barrel mark, after G7 finance ministers declared they “stand ready” to take action to support energy supplies