Oil Shock Sends UK Borrowing Costs Soaring as Emergency Budget Looms

Oil exploded past $105 a barrel on Thursday as the US-Iran war in the Strait of Hormuz escalated into the biggest wave of shipping attacks yet — sending UK gilt yields screaming to 19-year highs and raising the real prospect of Chancellor John Healey being forced into an emergency Budget.

Brent crude surged 3.3% in a single day after Iran attacked two US ships and eight tankers near the Strait of Hormuz on Wednesday, in retaliation for the US sinking five Iranian...