Oil Prices Face Downward Pressure as Investors Expect Bank of England to Hold Rates at 3.75%

Kathleen Brooks of XTB said a U.S.-Iran peace agreement aimed at ending conflict in the Middle East and reopening the Strait of Hormuz has put downward pressure on oil prices and eased inflation concerns. According to Jin10, the development comes ahead of the Bank of England’s interest-rate decision due on Thursday, with investors widely expecting the UK benchmark rate to remain unchanged at 3.75%. Markets are expected to focus on any split in the vote and the central bank’s communication for clues about the direction of future rate decisions. London Stock Exchange Group data showed markets have fully priced in expectations that the Bank of England will raise rates by 25 basis points in December.