Oil jumps after Saudi thwarts missile attack

 Oil prices rose after Saudi Arabia thwarted an attempted Houthi attack on a major export route. 

Brent crude increased by 4pc on Thursday to $107.90 a barrel after the country’s military forces  intercepted six ballistic missiles fired by Yemen’s Iran-backed militia. 

The attack had targeted the Taif and Yanbu area of the Red Sea, the primary alternative export route for crude, with Saudi Arabia’s counterstrike raising hopes the country can keep oil flowing. 

Saudi Arabia has been working to restore output along its East-West pipeline, which was shut down on September 11 following drone attacks that Riyadh attributed to Iraqi militias.

It came as US long-term borrowing costs hit their highest level since 2004 as a global rout in bond markets deepened. 

Yields on 30-year US Treasury bonds climbed to 5.43pc on Thursday, while the yield on 30-year UK gilts rose to 5.87pc, near its highest level since 1998. 

Japan’s 10-year bond yield also surged to 3.08pc, its highest level since 1996.

The latest rises show the worldwide bond sell-off is gathering pace as stronger-than-expected US growth and higher oil prices fuel inflation fears.

Meanwhile, US private sector activity jumped unexpectedly to a five-year high in September. 

Traders are betting on three US rate rises by April next year in an effort to bring down inflation, with money markets suggesting a 70pc chance of the Fed following this month’s rate rise with a second in October.

Thank you for following our coverage of the global bond sell-off, driven by investor’s fears over rising inflation.

Looking at the markets, the 10-year Treasury yield is sat at 5.14pc, while the benchmark Brent crude oil fell back slightly to $105.

This follows an escalation in tensions, as Saudi Arabia thwarted an attempted Houthi attack on a major export route.

You can stay up to date with the latest here.

05:20pm

FTSE falls at close after “showing resilience”

The FTSE 100 index closed 0.24pc lower today after “showing resilience”, having led for most of the day.

Rising bond yields and oil prices above $100 per barrel weighed on equities, as defence and energy sectors helped limit broader market losses.

Dan Coatsworth, head of markets at AJ Bell, said: “The FTSE 100 showed resilience on Thursday as it benefited from strength in energy, consumer non-cyclical, healthcare, real estate and utility stocks.”

“These more than offset weakness in industrials, miners, consumer cyclicals and financials.”

05:00pm

Oracle shares plummet after issuing “force majeure”

Oracle shares have fallen 5pc after issuing a “force majeure” notice to the developer of its New Mexico AI data centre.

The notice lets Oracle delay payments to developer Blue Owl Capital if the facility fails to open by 2028.

Known as Project Jupiter, the massive build-out faces local opposition, environmental hurdles, and investor anxiety over $18bn in project debt.

However, Oracle insists the project remains on schedule, and both companies say long-term financial commitments are unchanged.

Senior Technology reporter Matthew Field has more on this story.

04:45pm

Oil surges on heightened Middle Eastern tensions

Brent crude has risen 4pc to $107.90 a barrel after Saudi Arabia intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis.

It remains unclear whether the attack caused damage or casualties in Taif or Yanbu, the primary alternative export route for Saudi crude.

The attack followed a widespread emergency alert covering several areas, including Jeddah and the holy city of Mecca.

The strikes on Yanbu came just as prospects were improving for resuming crude exports from its terminal.

According to industry sources, Saudi Arabia has been working to restore pumping volumes along its East-West pipeline, which was shut down on September 11 following drone attacks that Riyadh attributed to Iraqi militias.

04:23pm

Wall Street slips as bond sell-off weighs on stocks

US stock markets continued to face downward pressure on Thursday, driven by surging bond yields and escalating tensions in the Middle East.

The tech-heavy Nasdaq led the selloff, sliding 0.8pc, while the S&P 500 fell 0.4pc and the Dow Jones Industrial Average dropped 0.2pc. 

Stocks fell as 10-year Treasury yields jumped to 5.11pc, a 19-year high, raising borrowing costs across the economy. 

Heightened tensions with Iran lifted oil prices and concerns over a potential ban on US diesel exports further dampened market sentiment.