Closing post
Time to wrap up…
Saudi Arabia’s state oil company has warned of “catastrophic consequences” for the world’s oil markets if the US-Israeli war with Iran continues to block shipping in the strait of Hormuz.
The world’s biggest oil company expects to be able to export about 70% of its usual crude output despite the stranglehold on the vital trade artery, but its chief executive warned that there would still be “drastic” consequences for the world economy if the disruption continues.
Oil prices have tumbled from four-year highs, capping an extraordinary 24 hours in global markets and prompting global stocks to rebound after Donald Trump suggested the US-Israel war on Iran could end “very soon”.
The FTSE 100 opened higher on Tuesday, following an overnight rally in Asia, which has been one of the most exposed regions to higher energy prices.
Europe’s largest automaker, Volkswagen, is to shed 50,000 jobs by the end of the decade, as it faces falling sales in China and North America and punitive US tariffs imposed by Donald Trump.
The 10-brand group, whose luxury subsidiaries Porsche and Audi are also under pressure, said the jobs would go in Germany, affecting the entire group, as part of a restructuring drive in light of the darkening global business climate.
The group had already struck a deal with German trade unions at the end of 2024 to slash 35,000 jobs by 2030, in part by natural attrition through retirement and other staff departures.
Key events
US markets have opened a bit higher. The S&P 500 share index has risen by 0.4%, while the Nasdaq is up 0.5%.
The FTSE 100 is still enjoying a strong rise of 1.8%.
Meanwhile Brent crude, the international benchmark for oil prices, is now down 11.7% to $87.37 a barrel.
Iran war could add 1% to UK inflation this year, OBR says
A sustained spike in energy prices due to the Iran war could drive up inflation in the UK one percentage point higher than expected, a member of the Office for Budget Responsibility (OBR) budget responsibility committee has said.
Professor David Miles told MPs that since the OBR published its new economic forecasts last week, alongside the chancellor’s spring statement, oil prices had risen by about 20% and gas prices were up by about 50%.
He said:
If there’s no change in the picture on prices from now on forward, we estimate something like a 1% higher level of consumer prices in the UK by the end of the year.
We had thought, without taking all this into account, that the inflation rate in the UK might be pretty close to 2%. Right now, if prices don’t change from where they are – both the spot and market expectations for futures prices, which is particularly important for the Ofgem price cap – by the end of this year we think the inflation rate would end the year not near 2% but nearer 3%.
Brent crude has now slipped just below $90 a barrel, down 9.9% to $89.22 a barrel.
IEA calls ‘extraordinary meeting’ of member governments
Jillian Ambrose
The world’s energy watchdog will meet with leaders from 32 countries later today to discuss the “significant and growing risks” for the global oil market and whether to release emergency oil stocks into the market.
The head of the International Energy Agency (IEA), Fatih Birol, met with G7 leaders earlier today to update the bloc on the state of global oil and gas markets after war erupted in the Middle East 11 days ago.
He will follow the meeting with a second gathering of all IEA members, across 32 countries, to decide whether to move ahead with calls to release oil stocks into the market to help temper the historic market price gains recorded in recent days.
He said:
In oil markets, conditions have deteriorated in recent days. In addition to the challenges of transit through the Strait of Hormuz, a substantial amount of oil production has been curtailed. This is creating significant and growing risks for the market.”
He said the wider IEA meeting today would be used to inform a decision on whether to make the emergency stocks held by IEA countries available to the market.
Members of the IEA, which was set up following the Middle East oil crisis in the 1970s, are required to hold at least 90 days worth of crude supplies in reserve which can be released to the market in the event of a supply shock.
In total, IEA members hold over 1.2bn barrels of public emergency oil stocks, and a further 600m barrels of stocks held by industry under government obligation.
China is estimated to have record high levels of crude in storage after increasing its imports to take advantage of falling market prices over the past two years. The world’s biggest energy importer, which is not a member of the IEA, may have up to 1.4bn barrels of oil in storage.
UK, Germany and Italy ‘working together’ to navigate though strait of Hormuz
Keir Starmer has agreed with Germany’s Friedrich Merz and Italy’s Giorgia Meloni to “work closely together” in navigating commercial shipping through the strait of Hormuz.
A spokesperson for Starmer said the prime minister spoke to the leaders of Germany and Italy on Monday night “about the situation in the Middle East, discussing the strait of Hormuz.”
He said:
They agreed on the vital importance of freedom of navigation for vessels through these waters. They agreed to work closely together in the coming days in the face of Iranian threats.
The prime minister updated on the ongoing defensive measures taken by the UK in the region in recent days, in support of our partners in the Gulf.
The leaders emphasised the need for ongoing co-operation in the face of the escalating situation, and agreed to stay in close contact in the coming days.
He added that the UK was “working with our allies on a range of options to support commercial shipping through the Strait as the threat picture develops.”
…The chancellor and economic secretary to the Treasury have both liaised with Lloyd’s of London over the last week to ensure there’s appropriate insurance cover available to operators in light of the ongoing conflict, including policies to cover businesses for losses or disruption caused by war and civil war, revolution, rebellion, insurrection and terrorism.”
Turning back to the FTSE 100, which is up 1.6%. House builder Persimmon is still the best performer today, with its shares up 6.7%. That is followed by Pershing Square Holdings, the investment trust run by the US billionaire Bill Ackman. Its shares are up 6% after Ackman announced he plans to list shares in a new closed-ended fund in the US.
The airline group IAG, the owner of British Airways, is also one of the best performers today, up 3.9%, as investors take confidence in a lower oil price.
BP and Shell are unsurprisingly down today, by 1.8% and 1.1% respectively.
Abu Dhabi halts operations at oil refinery – reports
Abu Dhabi National Oil Co has reportedly halted operations at its refinery in the Ruwais industrial complex, following a drone attack in the area.
Authorities in Abu Dhabi said they were dealing with a fire at a facility in the Ruwais industrial complex that had been caused by a drone attack.
Bloomberg is reporting that ADNOC has halted operations its Ruwais oil refinery, which is the biggest in the United Arab Emirates.
ADNOC was assessing damage at the plant, according to Bloomberg. The Ruwais refinery can process 922,000 barrels of oil a day.
It comes after Saudi Arabia shut its biggest refinery last week, and Qatar halted its liquefied natural gas proudction amid drone strikes.
Abu Dhabi authorities are responding to a fire that broke out at a facility in the Ruwais Industrial Complex, caused by a drone attack. No injuries have been reported at this time.
The public is reminded to obtain information from official sources only and to avoid spreading…
— مكتب أبوظبي الإعلامي (@ADMediaOffice) March 10, 2026
Bitcoin is also joining the relief rally today, rising by about 3% to trade back above the $70,000 mark.
The cryptocurrency has struggled this year, dropping by about 19% against the dollar, as it has struggled against uncertainty around US trade tariffs and geopolitical tensions.
Lego sales rise but Iran war could hit costs, boss says
Sarah Butler
Lego said supplies of its toys would not be affected by conflict in the Middle East but a prolonged increase in the oil price could hit costs as it revealed a 16% rise in sales last year.
The company said sales had risen strongly to kids, teenagers and adults as it expanded its ranges into new kinds of toys such as its Botanicals, plant-influenced kits, as well as tie-ups with well known brands including Formula One and Starwars.
Jesper Andersen, the finance director of Lego Group, said its supply chain set up, with seven factories around the world, meant the toymaker was protected during periods of disruption as “we do not have to ship products or materials across long distances.”
He said:
We have strategies and contracts in place so we are able to mitigate short term impact [but if there was a] “prolonged increase in the oil price costs of course will be affected”.
Lego said sales to shoppers had grown more than twice as fast as the toy market, which increased by 7% last year, and it expected to continue to outperform the global market which will grow by less than 10% this year.
The company’s revenues rose 12% to 83.5bn Danish Kroner (£6.5bn) and operating profits rose 18% to 22bn Kroner (£1.7bn) last year. More than half the material in its plastic bricks is now made from recycled or renewable material, up from a third in 2024.
Saudi Aramco will be able to export 70% of normal crude shipments ‘within days’
Saudi Arabia’s state-owned oil company has said it will be able to export about 70% of its normal crude shipments within days.
Amin Nasser, the chief executive of Saudi Aramco, said in an earnings call that the company was working to boost exports at its port in the Red Sea, which will allow about 5m barrels a day to reach the global market without going through the strait of Hormuz.
He said:
Immediately as the ports were starting to close, we ramped up production through the east-west pipeline, which has a capacity up to 7 million barrels a day, most of it for export.
Approximately 2 million barrels of that will be utilised supplying existing refineries in the western regions, which also export some of the products to the global market. We are ramping up. We should be reaching capacity in a couple of days.
…As I said, within a couple of days, we should be reaching the capacity on the East-West Pipeline, pending an availability of vessels which are currently en route.
However Nasser warned that the Middle East conflict would have “catastrophic consequences” for the oil market if it continued.
Oil prices are still down this morning, with the international benchmark Brent crude down 7.7% to $91.48 a barrel.
Renault will end sale of fuel-only cars in 2030
Lisa O’Carroll
Renault has announced it will end the sale of fuel-only cars in 2030 and develop a new electric car platform with Google.
The French company said it was forging ahead with the end of the internal combustion engine.
“By 2030, the brand is aiming for … 100 % electric sales in Europe and 50% outside Europe,” the company said, adding that the transition would also include its budget brand Dacia.
The EV sales will include hybrid cars, which are allowed under concessions made by the EU earlier this year to help car companies reach net zero targets and develop small cars in their EV ranges.
The company said it plans to develop its new electric car platform together with Google based on android technology.
Renault said the aim is to have 90% of the vehicle functions able to be updated remotely, cutting time to deploy updates, and able to handle ultra-fast charging in as little as 10 minutes.
Volkswagen to cut 50,000 jobs by 2030 in Germany
Volkswagen has said it will cut 50,000 jobs in Germany by 2030, as the German car manufacturer struggled year against US trade tariffs, tough competition in China and an expensive strategic shift at Porsche.
The carmaker, which owns brands such as Porsche, Audi and Seat, reported that its profit before tax slumped by 44% in 2025 to €9.3bn, with revenue flat largely flat at €322bn.
Oliver Blume wrote in a letter to shareholders:
In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany. As a result of collective bargaining agreements and downsizing measures, we managed to achieve cost savings of around €1 billion in fiscal year 2025 as planned. We are on course to meet our goal of achieving net annual cost savings of more than €6 billion across the Group by 2030.
Oil market faces ‘catastrophic consequences’ of Iran war, says Aramco
Oil prices have dropped sharply this morning (Brent crude is now down 8.7% to $90.37 a barrel), but the continued disruption in the strait of Hormuz could create “catastrophic consequences” for the industry, Saudi Arabia’s state-owned oil company has warned.
Amin Nasser, the chief executive of Aramco, said the disruption is likely to hit aviation, agriculture, cars and other industries.
He said:
There would be catastrophic consequences for the world’s oil markets, and the longer the disruption goes on, and the more drastic the consequences for the global economy.”
The boss of the world’s top oil exporter added that its Ras Tanura refinery was in the process of being restarted after a small fire from an attack last week.
His comments came as Aramco reported a 12% drop in annual profit due to lower oil prices last year. It also announced it would buy up to $3bn in shares in its first ever buyback.
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