FTSE 100 Live: Stocks to drop; Oil price keeps pressure on bond market

By 8 a.m. on Wednesday, the price of Brent crude oil had climbed above $95, a level not seen in nearly six weeks. This surge in energy prices is putting pressure on global markets, including the bond market. The rising cost of oil is attributed to renewed tensions between the United States and Iran. The US military launched fresh strikes against Iranian targets near the Strait of Hormuz, with President Donald Trump claiming the actions were in retaliation for Iran's attempts to place mines in the waterway and for an earlier attack on a US military base. Trump also threatened a larger response to Iran's actions.

The impact of this oil price increase is being felt across the global bond market, where borrowing costs have hit their highest level since the financial crisis. UK government debt, known as gilts, experienced a yield of 5.2 percent, marking an 18-year high. Longer-term gilt yields also jumped to 5.9 percent in early trading on Tuesday.

Investor Kathleen Brooks, research director at XTB, noted that the US mid-term elections are approaching in two months, and President Trump shows no signs of dialing back his military actions in Iran. This could lead to volatility in the coming weeks, as investors become concerned that high oil prices may become a permanent fixture.

Here are some of the top headlines from today: a 'misleading' ad from property firm Frasers was banned after a dispute with a regulatory body; the UK economy is stuck in a "slow lane" as business investment is expected to decline; Premier League clubs are making record summer spending, exceeding £3 billion; and Business Secretary Vince Burnham has outlined his "triple helix" plan for growth, emphasizing the importance of government involvement.

Additionally, Formula 1 driver Kevin Magnussen has joined fintech startup Flatpay, alongside other notable entrepreneurs such as Maurizio Maldini and Antoine Griezmann.