Tom Stevenson, investment director at Fidelity International, believes it would need a severe spike in oil price from this level to significantly impact global growth.

“Financial markets have responded with measured calm to geopolitical developments in the Middle East. While the developments over the weekend marked a significant geopolitical moment, investor reactions across asset classes suggest a belief that the broader economic and market impact may remain limited – at least for now.

“The oil price was unsurprisingly the main story, with an initial spike of nearly 6% in the cost of Brent crude, quickly being pared back to a gain of less than 1%.

“Stock markets have so far taken the events in their stride. The MSCI Asia Pacific index fell nearly 1% while the Stoxx Europe was 0.2% down, as was the FTSE 100. US market futures were little changed.

“While the market’s calm might seem strange given the geo-political backdrop, it reflects the reality that even an ongoing conflict in the Middle East may have only limited impact on global growth. The global economy is much less energy-intensive than it was in the 1970s when the Arab oil embargo had such a devastating stagflationary impact on western economies.

“In addition, the oil market is well supplied currently, with Opec+ countries able to deploy considerable spare capacity. Demand is relatively subdued in the world’s two biggest economies, the US and China, and supply is abundant. It would take a spike in the oil price to over $100 a barrel to have a serious impact on economic growth and current expectations are significantly lower than that.”

A cash offer from a private equity firm, Advent International, is for £37.63 per share.

Spectris’ share price at the close of Friday’s session was around £33.48, sparking an immediate jump of 15 per cent when markets reopened on Monday morning – by far the FTSE All-Share’s biggest riser on the day.

Even so, the price could yet move even higher.

Full details on why here:

Rachel Reeves has spoken to reporters over oil prices, per the Guardian:

“We want de-escalation because it’s the right thing for the Middle East, but we also want de-escalation because of the ramifications of conflict in the Middle East for the rest of the world including the UK.

“We have seen increases in oil prices in recent days and weeks, which of course will have an impact on the UK economy. We recognise the challenge that businesses and families face with energy costs.

“Of course, higher oil prices will have implications for the UK economy. One of the reasons we want de-escalation is to ensure that oil continues to flow and to ensure that that key route, both for oil and for wider trade – the Strait of Hormuz – continues to be open.”

Donald Trump’s decision for the US to bomb Iran has seen fears of a crisis in the Middle East deepen, with the world braced for a counter attack from Tehran.

The price of oil has been on the rise over the past three weeks – amid Israel strikes on Iran’s nuclear sites – but there are concerns it could rocket even further, with one expert warning of a possible 40 per cent increase.

Here’s how it all could impact you:

Brent crude briefly climbed above 78 US dollars (£58.06) a barrel in early Monday trading before paring back slightly to stand at 77.6 dollars (£57.76).

Investors are concerned about potential retaliatory actions from Tehran. Iran can disrupt oil shipments through the strategically vital Strait of Hormuz, a move which analysts fear could trigger a dramatic surge in crude prices and significantly impact global energy markets.

A quick look at the markets and how they are faring heading into lunch.

The FTSE 100 is flat, regaining those earlier losses but not pushing into outright positive territory.

It’s sat at 0.03 per cent down at midday – the oil giants among those effectively giving ballast compared to European stocks which sees France and Germany’s markets down 0.4 and 0.3 per cent respectively.

The biggest riser is Convatec Group, up 3.5 per cent, while JD Sports is the biggest faller, down 3.4 per cent.

Mixed responses to the Industrial Strategy, then…

Harry Quilter-Pinner, executive director at IPPR, said: “The UK has had 11 economic strategies in 13 years. That chop-and-change approach wasn’t fit for purpose. Today’s industrial strategy finally turns a page, offering much-needed consistency, clarity and certainty for business.

“No industrial strategy pleases everyone. But this government’s clear focus on clean energy, defence and advanced manufacturing shows it’s serious about going green to boost the economy and create good jobs outside of London. IPPR has worked closely with government to identify the sectors where Britain can lead, from heat pumps to wind energy. The UK’s future prosperity now depends on tapping into these growing global markets.

“The test now is whether this 10-year strategy moves from PDF to process. It must drive decisions across government—from scaling green supply chains to training skilled engineers—and be backed with funding beyond the current spending review. It can’t just sit on a shelf as a job well done.”

Kate Nicholls, chief executive of UKHospitality, said: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the Government’s ambition to create jobs and help people into work.

“Once again, growth will be distributed unevenly and centred around small industrial clusters that have high barriers to access – hardly a recipe for driving social mobility.”

Michelle Ovens CBE, founder of Small Business Britain, said: “The UK’s 5.45 million small businesses make an incredibly powerful contribution to our economy, society and communities, setting the UK apart on the world stage and representing huge future growth potential. To unlock this phenomenal opportunity, we need to be as ambitious about supporting the UK’s entrepreneurs, as entrepreneurs are themselves in driving growth, creativity and innovation.

“The Government’s new Industrial Strategy represents an important step forward to drive long-term investment and bring down some of the barriers faced by small businesses, particularly with initiatives to boost access to finance and accelerate technology adoption and digital skills development.”

We haven’t really touched on the newly announced Industrial Strategy yet – let’s do so now.

Lower energy costs, spending £1.2bn on skills, reducing planning times and spending more than £22bn a year on driving innovation are among the key focuses, with the government focusing on eight sectors of growth.

Those are: Advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.

The response has been decidedly mixed, depending on where your business or sector sits, as we’ll see in the next post…