Middle East conflict sees banks' share prices surge by up to 2%

SHARES in the FTSE 100’s leading banks experienced a rise yesterday, as escalating conflict in the Middle East sparked inflation concerns.

- SAMUEL NORMAN

Barclays and Natwest saw an increase of nearly 2%, while Lloyds rose over 1% during early trading, as oil prices climbed another1% to $74.90 a barrel.

This comes after a surge of over 9% on Friday following Israel’s strikes on Iran's nuclear programme. Attacks have continued in recent days.

Standard Chartered, meanwhile, secured second place among the index’s risers, jumping nearly 3%.

The bank's gains were bolstered by easing trade tensions between the US and China, with rising inflation fears due to oil prices providing an additional boost.