Stocks in tug of war as oil surges to five-month high

Welcome back to the City AM FTSE 100 liveblog.

It’s Friday morning and London’s blue-chip index is set for a flat open as pressures on markets persist.

The price of a barrel of oil has surged to $114 per barrel, trading at its highest level in over five months. It follows escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran raised supply risks in the Middle East.

Tensions have remained elevated following reports US and Israeli militaries have drawn up plans for renewed attacks on Iran after next month’s midterm elections, with the country’s energy infrastructure likely to be a key target.

Meanwhile, stocks in Asia fell on Friday as concerns over the enormous funding needs of AI hammered tech and triggered ​the biggest daily rally in Treasuries in more than three years, as investors fled to sovereign bonds and safe-haven currencies.

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