FTSE 100 Live: Stocks slump as oil soars on Iran attacks, BoE holds rates steady

• FTSE 100 down 254 points to 10,050

• Brent crude lipid soars arsenic Iran and Israel onslaught vigor facilities

• UK unemployment complaint unchangeable astatine 5.2% past month, wage maturation slowed

• Bank of England determination astatine midday

A unanimous ballot from the Monetary Policy Committee has been a rarity successful caller years, but 'wait and see' seemed the champion attack arsenic the timing of Iran warfare remains uncertain.

The connection from the MPC says the contiguous trigger to beryllium choky was the disruption to lipid and state supplies flowing done the Strait of Hormuz, the cardinal Gulf shipping lane, which has astir crushed to a halt pursuing Iranian attacks connected vessels attempting transit.

"The duration of the reduced proviso of vigor from the Middle East was truthful uncertain" astatine the meeting, the connection says.

"Notwithstanding that uncertainty, quality from marketplace participants suggested that their cardinal anticipation was for a comparatively short-lived conflict.

"In that context, members noted upside risks to lipid and state prices looking ahead. Energy proviso would instrumentality clip to retrieve adjacent if the struggle abated. Efforts to rebuild stocks, arsenic good arsenic greater consciousness of vulnerabilities successful the planetary vigor network, could prolong higher lipid and state prices."

The MPC notes that volatility successful lipid and state prices has "made the short-term outlook for ostentation peculiarly uncertain", but what is definite is that caller increases successful vigor prices volition hold the instrumentality of CPI ostentation to the 2% people that had been expected astatine the clip of its February report.

"The contiguous effect would beryllium done higher substance prices. Based connected vigor prices arsenic of adjacent of concern connected 16 March, CPI ostentation was present expected to beryllium adjacent to 3.5% successful March, astir fractional a percent constituent higher than expected successful the February report."

The MPC said monetary argumentation could not power planetary vigor prices but would purpose to guarantee ostentation returned sustainably to its 2% target.

It flagged risks that higher vigor costs could embed inflationary pressures done wages and prices, but could arsenic weaken an already fragile system and propulsion unemployment higher.

The Bank of England has held involvement rates astatine 3.75%, with the monetary argumentation committee voting unanimously to beryllium choky arsenic the Middle East struggle drives vigor prices sharply higher and clouds the ostentation outlook.

The Bank warned that CPI ostentation – presently 3% – could emergence to 3.5% by the 3rd quarter, but said it was arsenic alert to the hazard that higher vigor costs would weaken an already fragile economy.