War Premium: BoE Holds Rates as Iran Conflict Locks In Higher Energy Costs

The Bank of England held interest rates at 3.75% on Thursday, but it was a hawkish hold that sent a clear warning: the era of easy monetary policy is over, and the Iran war has become the defining risk to the UK economy. The decision, a 6-3 split, saw three policymakers vote for an immediate hike, signaling that rate rises are likely later this year if oil prices stay elevated.

Trade Routes

• Middle East: Renewed US attacks on Iran have pushed Brent crude back...