Goldman Sachs has warned that Brent crude could exceed $120 a barrel if Middle Eastern supply disruption continues. Sentoria examines the severe forecast, why the Strait of Hormuz matters and what prolonged high oil prices could mean for UK inflation, interest rates and business costs.
UK businesses face political change, rising mortgage rates and renewed market volatility as Andy Burnham prepares to become prime minister. China has condemned the nationalisation of British Steel, while Burberry reported improving sales despite disruption from the Middle East conflict.
China’s economy grew by 4.3% in the second quarter of 2026, its weakest rate in more than three years. Strong exports and high-tech manufacturing were offset by weak consumer demand, falling investment and a continuing property downturn, with important implications for UK exporters, importers and manufacturers.
Germany’s carmakers are facing historic restructuring as Chinese manufacturers gain ground in Europe and legacy brands struggle with lower margins, weaker demand in China and the shift to electric vehicles. Volkswagen is reportedly considering cuts of up to 100,000 jobs, while BMW, Mercedes-Benz and Porsche are also reducing costs. The challenge is not just cheaper competition, but whether Europe’s automotive leaders can adapt quickly enough to a market now shaped by software, batteries, electrification and value.
UK energy prices are back at the centre of the economic debate as households face a 13% price cap rise, manufacturers warn of job losses and relocation, and the Bank of England prepares for a difficult interest rate decision later this week.
