Oil prices jump 4% after attacks on tankers near Yemen
Oil prices have jumped by 3.7% this morning as the backlash from the US war in Iran appeared to spread to the Red Sea.
The price of futures for Brent crude oil, the global benchmark, rose by 3% on Thursday to reach as high as $97.45 per barrel, approaching the $100 mark for the first time since May.
The price of futures for the North American benchmark, West Texas Intermediate, also rose by 4% as high as $89.85, the highest in more than a month.
It came as the US launched a 12th consecutive night of strikes against Iran, while the Iran-aligned Houthis in Yemen attacked Saudi Arabian oil tankers in the Red Sea – threatening to choke another global oil export route.
Online trading platform Saxo said the attacks prompted more vessels to divert from the Bab el-Mandeb strait by Yemen, “creating what analysts describe as a two-chokepoint problem for oil”.
The other chokepoint is the strait of Hormuz, which Iran has effectively closed in an effort to put economic pressure on Donald Trump to stop the US and Israeli attacks.
Key events
Google fined €890m by EU for search and app store competition violations
Dan Milmo
Google has been fined a total of €890m (£760m) by the EU for breaches of online competition laws by its search and app store services.
The European Commission, the EU’s executive arm, said Google had broken the Digital Markets Act by giving priority to its own services such as shopping and hotel deals in search results over those of its rivals.
It also infringed the DMA by preventing app developers from steering consumers towards cheaper offers on websites or alternative app stores.
Google has been fined €460m for the search-related breach and €430m for the app store violation.
The commission has ordered Google to treat third-party services that appear in its search results in a “fair and non-discriminatory manner” and allow app developers to make offers outside Google’s app store.
You can read the full story from Dan Milmo and Lisa O’Carroll here:
Ford and China’s Geely to share US carmaker’s Spanish factory
Ford and Chinese carmaker Geely have agreed to join forces to build cars for both brands in Valencia, Spain, in the latest example of carmakers in Europe paving the way for Chinese rivals.
American carmaker Ford has long struggled in its European operations, and negotiated with Geely for months over the partnership. The joint venture, two-thirds owned by Ford 34% owned by Geely Auto, will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028.
The companies said the collaboration would maximise use of the Spanish plant, lowering the costs per vehicle.
The plant has operated since 1976, when it built the original Ford Fiesta. It will build the Ford Kuga crossover, Bronco SUV and another crossover, plus two Geely SUVs.
Jim Baumbick, president of Ford Europe, said:
This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone.
What we’ve achieved in Valencia, with the ongoing support of Spain’s national and regional governments, is a masterclass in public-private partnership that sets the benchmark for the rest of Europe.
Alex Nan, vice president of Geely Auto Group, said:
This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe.
We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe’s green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.
EasyJet profits hit by higher oil prices
Joanna Partridge
The low-cost airline easyJet has revealed a 70% slide in profits because of soaring fuel costs and later bookings as a result of the conflict in Iran, only weeks after it agreed to a £5.7bn takeover.
The carrier reported a pre-tax profit of £85m between April and June compared with £286m during the same period a year earlier, as its fuel costs increased by £105m after the outbreak of hostilities in the Middle East in late February sent energy prices rocketing.
It came as two US investment firms vie to buy easyJet. The airline’s board originally accepted the fifth bid from Castlelake, worth £5.5bn, but then recommended a higher bid from Apollo Global Management, worth £5.7bn, or more than £7 a share. However, a potential EU review of airline ownership has cast a question mark over the deal.
EasyJet said customer bookings had begun to improve, but passengers were continuing the trend of booking their trips just before departure.
The company said the outlook for the remainder of its financial year was dependent on “important remaining bookings, as well as fuel prices, which continue to be volatile”.
You can read the full story here:
The threat of higher oil prices is not just a problem for oil users: higher inflation could push central banks to raise interest rates as well.
Analysts led by Henry Allen, at Deutsche Bank said the seven-week high for oil:
has also fuelled speculation about more rate hikes. For instance, futures are currently pricing in a 36% probability of a Fed rate hike as soon as next week, and bond yields jumped as well, with the US 30-year real yield (+0.4 basis points) closing at a post-2008 high of 2.93% yesterday.
Higher inflation would be a headache for Federal Reserve chair Kevin Warsh, who was appointed by Donald Trump to lead the US central bank on the understanding that he was in favour of cutting interest rates – not raising them to counter an oil price surge caused by Trump himself.
The Houthi attacks off the coast of Yemen targeted Saudi Arabian tankers, but two Chinese vessels carrying Saudi oil appear to be trying to exit the Bab el-Mandeb strait, Reuters reports.
From Reuters:
Two Chinese supertankers carrying a combined 4 million barrels of Saudi Arabian oil are exiting the Red Sea via the Bab el-Mandeb strait on Thursday, shipping data showed, even as a Saudi vessel came under attack in the region.
The ships’ attempt to transit the strait will clearly test how tightly the Houthis will impose the naval blockade on Saudi Arabia they announced on Monday.
The ships in question are the Singapore-flagged VLCC Xin Long Yang, and the Chinese-flagged VLCC Cosnew Lake, the report said. VLCC stands for very large crude carrier.
After the blockade was announced the tankers u-turned in the middle of the Red Sea between loading oil at Yanbu in Saudi Arabia and passing through the strait by Yemen. Their progress will now be watched closely by traders for signs of whether armed Houthi groups will strictly enforce the blockade.
Oil prices jump 4% after attacks on tankers near Yemen
Oil prices have jumped by 3.7% this morning as the backlash from the US war in Iran appeared to spread to the Red Sea.
The price of futures for Brent crude oil, the global benchmark, rose by 3% on Thursday to reach as high as $97.45 per barrel, approaching the $100 mark for the first time since May.
The price of futures for the North American benchmark, West Texas Intermediate, also rose by 4% as high as $89.85, the highest in more than a month.
It came as the US launched a 12th consecutive night of strikes against Iran, while the Iran-aligned Houthis in Yemen attacked Saudi Arabian oil tankers in the Red Sea – threatening to choke another global oil export route.
Online trading platform Saxo said the attacks prompted more vessels to divert from the Bab el-Mandeb strait by Yemen, “creating what analysts describe as a two-chokepoint problem for oil”.
The other chokepoint is the strait of Hormuz, which Iran has effectively closed in an effort to put economic pressure on Donald Trump to stop the US and Israeli attacks.
Pubs and restaurants company Mitchells & Butlers had other things on its plate this summer: the British heatwaves hit its sales.
The FTSE 250 company said that sales were flat in the three months to 18 July because of “several extended periods of extreme heat also had an adverse impact on trading” at its restaurants such as Toby Carvery and Miller & Carter, in a trading update published on Thursday.
Its sales comparison with last year was affected by Easter falling in the previous quarter, but food sales fell by 2.4% – even as drinkers seeking a sunny pint helped drink sales to rise by 2.6%. The football world cup also helped on some days. That left the business flat overall for the quarter.
For reference, here is M&B’s list of pub and restaurant brands: Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s, Ember Inns, Ego Restaurants and Pesto
Phil Urban, M&B’s chief executive, said:
Our business has performed with resilience during a quarter characterised by unusual weather patterns. The strength of our diversified portfolio has moderated the impact of external factors and together with the continued success of our investment programme and Ignite initiatives we remain confident in delivering our full-year expectations.
The company reported its trading up to 18 July before it had time to respond to the announcement on business rates.
Carmakers privately lobbied UK government to revoke 2035 ban
Major carmakers privately lobbied the UK government to revoke a ban on new petrol and diesel cars after 2035, according to documents that reveal for the first time the efforts to overturn a key decarbonisation policy.
BMW, Ford, Nissan and Toyota, plus the parts maker Bosch, wrote a joint letter to ministers in April calling for an “open technology approach” including petrol and diesel cars after 2035, when the government had said new cars must produce zero carbon emissions.
The letter was obtained by The Fast Charge newsletter via a freedom of information request and shared with the Guardian.
The companies wrote that the government should allow “highly efficient ICE [internal combustion engines], hybrids, plug-in hybrids, range extenders and combustion engines when utilising green steel and sustainable fuels” beyond 2035. All those technologies produce carbon dioxide by burning fuel, as well as other harmful pollutants.
You can read the full story here:
Back on the business rates cuts, and pub landlords are – perhaps unsurprisingly – very happy. But lobbyists never stop: now they want the one-year relief to be made permanent.
Emma McClarkin, chief executive of the British Beer and Pub Association, said:
For years and years, pubs have paid a disproportionately higher rate which has ground down their ability to keep the doors open, so we’re delighted that after working with Andy Burnham’s team prior to his election as Labour Party leader, he has swiftly acted on our concerns and provided new backing to our nation’s pubs as he promised.
The local has and always will be more than just a place to get a pint; it creates jobs, it’s our nation’s living room, it’s the anchor of the high street, so this sorely needed discount will be celebrated by pubs up and down the country.
We now look forward to working with Government to deliver permanent business rates reform so we can keep the pub in its rightful place; at the heart of our communities.”
Ash Corbett-Collins, chair of the Campaign for Real Ale, said:
This is a brilliant start to the new Prime Minister’s tenure, living up to the statements that he’s made before about pubs, pints and people.
Our business rates system is grossly unfair to pubs and social clubs, bricks and mortar businesses that are also vital social institutions for their communities and desperately needs reform.
As always we need to see the details at the Budget, but another year of rate relief will provide vital breathing space to publicans in England, while the work to review the rating system for hospitality businesses presumably continues.
The share price of British warehouse company Segro has jumped about 7% after it said it would be willing to accept a takeover offer from US rival Prologis.
Segro said last night after the market close that it would accept Prologis approach if it makes a firm offer, after rejecting a first £12.6bn offer and two further approaches.
The FTSE 100 company was valued at £12bn at Wednesday’s close of trading, meaning Thursday’s share price bump has added about £800m to its market value.
Prologis’s revised proposal offered 0.092 new shares for each Segro share, valuing the UK company at £10.32 per share, or about £14bn. Segro’s share price rose to £9.51 on Thursday, suggesting that investors are still uncertain whether the deal will go through.
It would represent the latest blow to the UK’s flagship FTSE 100 index, which has seen a series of large companies bought up by US rivals, either listed or private, or else straightforward departures to the US in search of higher valuations.
British Gas owner cutting 1,300 jobs
The owner of British Gas has said it is cutting 1,300 jobs because “changing customer behaviour” means it does not need as many service workers.
Centrica said it is reducing its customer operations workforce by about 14% – despite British Gas already having the third worst score among 17 companies rated by consumer group Which?. British Gas received two out of five stars for its customer service in the rating, and it has consistently ranked at the bottom of its peers.
On the other hand, Centrica said it had “strong customer satisfaction” and lower complaints per customer in its retail operation.
It came as the FTSE 100 company reported a £710m operating profit for the first six months of 2026, compared with a loss of £69m the year before.
A bit more from the Night Times Industries Association lobby group, which is also wary of the small print – while welcoming the broad policy.
Michael Kill, its chief executive, said he wanted to know in particular which live music venues would be excluded. He said:
We are still awaiting the full details and eligibility criteria, which are expected to be announced at the autumn Budget. We will also seek clarity on the proposed exclusion of the largest live-music venues and continue to press for the final scheme to provide the broadest possible support.
The government is undoubtedly making the right noises. We look forward to continuing this constructive dialogue and ensuring these commitments translate into tangible and inclusive support for businesses throughout the night-time economy.
Rob Davies
Pubs, clubs and live music venues might be happy with the tax relief announced by Andy Burnham, but other hospitality businesses are left out.
Kate Nicholls, chief executive of UK Hospitality, a lobby group, told the Guardian:
We welcome this as a positive down payment on the PM’s commitment to support hospitality and his pledge to return to look at this again at the budget. While support for pubs, bars and live music is welcome, [it misses out] the restaurants, cafes and hotels which are the heart of our communities and backbone of the high street.
So if the PM truly wants to to deliver a high street renaissance and growth in every postcode then we need to look at a business rates cut for the whole of hospitality and tackle the broader cost of doing business. We’ve seen £6bn extra taxes across the sector in the last two years so we need more.
Burnham to cut business rates for pubs, clubs and live music by 20%
Andy Burnham has cut business rates for pubs, clubs and live music venues by 20%, in the latest example of a flurry of policies since taking over as prime minister.
The cuts will cost about £100m a year, but will be partly funded by reviewing reliefs for “anti-social businesses”, with vape shops in particular singled out. 10 Downing Street said it will look at businesses that “do not make a positive contribution to local communities”.
The cut would save the typical pub an estimated £1,100 next year. 32,000 businesses will qualify – although the largest music venues will not benefit, with details due in the budget.
The government will also look at raising more tax from “businesses that sell through online marketplaces but do not comply with their tax obligations, putting them at an unfair advantage over businesses that play by the rules”. That could include more measures for online marketplaces who host sellers, Downing Street said.
Burnham has previously pledged to raise taxes on out-of-town warehouses for online companies such as Amazon to help pay for cuts to rates for hospitality firms.
Michael Kill, chief executive of the Night Time Industries Association, a lobby group, said the tax cut would provide “meaningful relief”. He said:
Having worked closely with the new Prime Minister’s team over recent weeks, it is encouraging to see a positive outcome from genuine engagement with the sector. The inclusion of clubs alongside pubs and live-music venues is particularly important and demonstrates a broader recognition of the vital economic, cultural and social contribution made by the night-time economy.
This is the third major policy announcement in as many days from the new government. Together, these interventions have undoubtedly begun to shift confidence across the sector and created renewed optimism that our concerns are being heard.
Burnham said:
For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do. What we’re announcing today is just the start as we work to bring back hope across the country.
The agenda
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11am BST: UK Confederation of British Industries industrial trends orders (July; previous: -45; consensus: -40)
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1:15pm BST: European Central Bank interest rate decision (consensus: no change)
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1:45pm BST: European Central Bank press conference
