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Oil dips below $100 as Iran offers to reopen Strait of Hormuz
The Guardian Economics said UK borrowing jumped to £18.3bn in August, and debt interest in particular hit an August record of £8.8bn, adding to market pressure on rates.
Oil prices dipped below $100 a barrel after an Iran-related report that the country has offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps to ease military pressure, according to Guardian Economics.
The outlet noted that the report also included an added requirement for Washington to show “seriousness and commitment” if diplomacy is to move forward, while emphasizing that such US-Iran chatter can be hard to verify and should be treated cautiously.
Guardian Economics linked the move in crude to bond-market sensitivities, saying that if the lower oil environment holds it could take pressure off bond yields.
In the same broader market context, the outlet said UK borrowing rose to £18.3bn in August and that the debt interest bill hit an August record of £8.8bn, alongside ONS reporting that borrowing came in higher than the official forecast.
Latest closeWTI crude $90.73 ▼4.1%