A fresh US-Iran flare-up pushed oil prices higher, and investors this week
raised expectations for Bank of England hikes in 2026, BofA strategists said.
They flagged the UK’s continued high sensitivity to global oil-price shocks as
prompting a repricing of rate expectations. London Stock Exchange Group data
show the market now prices a total of 27bp of Bank of England hikes for 2026, up
from 20bp a week earlier.