Markets pushed up the likelihood of near-term Bank of England rate hikes after renewed US–Iran hostilities. The US carried out airstrikes on Iran on Wednesday night and Iran attacked vessels transiting the Strait of Hormuz, raising concerns about oil

2026-07-09

Markets pushed up the likelihood of near-term Bank of England rate hikes after renewed US–Iran hostilities. The US carried out airstrikes on Iran on Wednesday night and Iran attacked vessels transiting the Strait of Hormuz, raising concerns about oil-supply disruption and inflation upward pressure. LESG shows markets now price a cumulative 31bp of UK rate hikes for 2026, up from 23bp before Trump’s Wednesday remark that an Iran ceasefire had ended.