Iran Ceasefire Collapse Sends UK Borrowing Costs to Five-Month High

AI Summary

The collapse of the ceasefire between Iran and the United States has caused UK borrowing costs to rise above five percent, reaching a five-month high amid escalating strikes and heightened geopolitical tension.

The UK’s borrowing costs have sailed past five per cent for only the third time since the onset of the Iran war, in a headache for Andy Burnham just days before he enters Downing Street. The yield on the UK’s 10-year government bond – the benchmark for a country’s long-term ability to borrow – climbed by as much as seven basis points on Tuesday morning, after the fragile ceasefire between Iran and the US shattered. The two countries exchanged strikes for a third successive night, in a dramatic escalation of tensions…