Oil Prices Fall as Iranian State Media Reveals Details of Draft Peace Deal with U.S. — As It Happened | Business
Households in Great Britain are set to face their steepest summer rise in energy bills in four years after the energy price cap was raised by 13%. The average annual gas and electricity bill will increase to £1,862 from July to September, up from £1,641 in the previous quarter, reflecting months of higher wholesale energy costs driven by the conflict involving Iran and wider tensions in the Middle East. Ofgem, the UK energy regulator, sets the cap based on the cost of supplying energy, including wholesale prices and standing charges.
The shift in oil markets has also affected financial markets, with Brent crude falling about 4% to around $95 a barrel after reports from Iranian state television suggested a possible agreement with the US that could restore commercial shipping through the Strait of Hormuz. Traders said the development raised hopes that a major disruption to global energy supplies could be avoided. As oil prices fell, UK gilt yields eased and US stocks opened broadly flat.
In corporate news, BP’s former chair, Albert Manifold, said he was removed “without warning and without explanation” and denied allegations about his conduct, adding that he would challenge what he called a false narrative. The statement comes amid continuing boardroom turbulence at the oil major.
Retail and consumer stories were also in focus. Modella Capital, which owns the former WH Smith high street business now called TG Jones, has bought Flying Tiger, the Danish discount retailer with around 1,000 stores worldwide and 80 in the UK. The deal expands Modella’s reach beyond Britain but raises questions about the future of the chain, given the firm’s reputation for rapid restructuring. Separately, Lidl has overtaken Morrisons to become Great Britain’s fifth-largest grocer, with sales rising 8.8% year on year and its market share reaching a record 8.6%, according to Worldpanel by Numerator.
Amazon said it paid more than £1.3 billion in direct UK tax in 2025, up more than 20% from around £1 billion the previous year, after generating more than £30 billion in UK revenue in 2024. The company said it also collected and administered £5 billion in taxes for the government through VAT, income tax and employee national insurance contributions.
In technology and healthcare, AstraZeneca shares slipped after the US Food and Drug Administration extended its review of the company’s cancer drug camizestrant, following an advisory panel vote against approval last month. Investors still see the treatment as a potential blockbuster.
Elsewhere, Samsung employees in its memory chip division are set to receive average bonuses of about £310,000 each after a government-mediated profit-sharing deal ended a five-month dispute. The agreement allocates 10.5% of operating profits from the semiconductor division to special bonuses.
