Overview

• Oil prices climbed from around $65 to nearly $75 per barrel over the past week as Israel and Iran exchanged strikes.
• UK inflation rose to 3.4% in April and economists forecast similar levels for May, with higher energy costs threatening to push it above 4%.
• Bank of England Governor Andrew Bailey and the MPC are widely expected to keep the base rate at 4.25% on June 19.
• Analysts warn that further Middle East volatility could ignite another wage-price spiral as workers demand higher pay to offset rising bills.
• Market pricing indicates a rate cut in August, but ongoing geopolitical tensions may delay any monetary easing until later in the year.