Oil prices jump above $125 amid fears of US-Iran conflict escalation, lifting Shell and BP shares.

Brent crude oil prices surged past $125 a barrel due to fears of escalating conflict between the US and Iran, following reports of a potential US military escalation and blockade extension. This spike pushed Shell and BP shares up by 0.9% and 0.5%, respectively. The closure of the Strait of Hormuz and ongoing tensions have raised concerns about a prolonged stagflationary shock, impacting sovereign bond yields in the UK and Germany. Investors are also pricing in a longer conflict, with longer-dated oil futures reaching new highs during the crisis.