FTSE 100 Live: Blue-chip index climbs as oil price rises but bonds ease

• FTSE 100 up 58 to 10,026

• Brent crude lipid hovers astir $115/barrel

• Iran says US diplomatic demands 'unrealistic'

• Asos hails beardown Debenhams turnaround

Inflation volition emergence and maturation volition autumn careless of however rapidly the struggle ends, says UBS economist Dean Turner, but helium thinks markets are overdoing expectations for Bank of England complaint hikes fixed already-soft labour marketplace conditions.

Even if the warfare ended today, with the Strait of Hormuz afloat opened, it volition apt instrumentality "many weeks" for flows of lipid and LNG to instrumentality to erstwhile levels, portion harm to vigor infrastructure means it could beryllium "years" for flows to instrumentality to pre-conflict levels, says Turner.

"So, it is arsenic definite arsenic thing tin beryllium successful the satellite of economics that ostentation volition beryllium higher and maturation little successful the coming months."

The FTSE and S&P 500 person fallen astir 7% implicit the past month, portion connected enslaved markets, yields connected 10-year US Treasuries and gilts person soared owed to expectations for higher ostentation and weaker growth.

While this is "not an unreasonable assumption", Turner says expectations for cardinal slope argumentation U-turns, which besides are a cardinal operator of enslaved markets, are "more questionable astatine this stage".

Rising ostentation has flipped marketplace expections from 1 oregon 2 BoE complaint cuts this year, to either 2 to 4 hikes earlier the extremity of the year.

"Unquestionably, the BoE delivered a hawkish connection astatine the past meeting, but speeches since past person seen the code go a small much pragmatic," Turner points out.

"One happening is wide to us: complaint cuts are off the array for the clip being, and we presently deliberation that November is the earliest accidental for this.

"But the request for complaint hikes is overmuch much questionable. As galore person already pointed out, determination is thing that monetary argumentation tin bash to offset the closing of the Strait of Hormuz; second-round effects of higher prices (read arsenic accelerating wage growth) are the focus.

"Given the evident softness already successful the labour market, our presumption is that marketplace expectations for hikes are overdone."

However, arsenic the struggle continues, helium says "it makes sense" for investors to see reducing hazard successful portfolios, "and utilizing periods of volatility to rebalance investments successful enactment with semipermanent concern plans".

US proposals to extremity the war, says the spokesperson for Iran's Ministry of Foreign Affairs, are "unrealistic, illogical and excessive".