Stock markets around the world could tumble on Monday and motorists are likely to pay more at the pump

• What the strikes on Iran mean for oil prices

• US–Israeli war on Iran – latest updates

The price of oil is expected to soar on Monday as the US-Israel war on Iran and the effective closure of the crucial strait of Hormuz rattles investors despite major producers’ pledges to increase its output.

US crude is on track to rise by 11% when trading resumes, according to data from the broker IG. The jump comes as Opec+, the cartel of oil producers, agreed on Sunday to step up its output by more than expected as it assessed the impact of the conflict.

Investors shifting to ‘heavy-asset, low-obsolescence’ companies insulated from disruption, says Goldman Sachs

Investors have a new mantra as they prepare for AI to shake up the global economy – the Halo trade.

Interest in Halo – short for “heavy assets, low obsolescence” - has risen as investors seek out companies with tangible, productive assets, which might be insulated from AI disruption, such as energy and transport infrastructure companies.

Average life satisfaction still below pre-pandemic peak despite improving economic outlook, reports ONS

The proportion of people in the UK who feel dissatisfied with life has failed to improve since the pandemic despite the economic outlook improving, official figures show.

The Office for National Statistics said a survey of personal wellbeing in the UK showed average life satisfaction remained below its pre-pandemic peak, despite the rate of gross domestic product per person rising since 2021.

Rolling coverage of the latest economic and financial news

Analysts suspect that regulators, such as California Attorney General Rob Bonta, could attempt to challenge Paramount’s takeover of Warner Bros Discovery.

Bonta, a Democrat, said late on Thursday that his office would take a ‘vigorous’ approach to the deal.

“Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”

“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

Rolling coverage of the latest economic and financial news

Artificial intelligence is boosting productivity in the euro zone but it is not yet causing a wave of layoffs due to greater automation of labour, European Central Bank President Christine Lagarde has claimed.

Testifying to the European Parliament’s Economic and Monetary Affairs committee this morning, Lagarde said:

“What we are seeing for the moment is that it’s increasing productivity. But we are not yet seeing consequences in terms of labour market and waves of redundancies that are feared, and that you know we will be extremely attentive going forward.”

“Our transformation continues with pace and intensity. We are consistently achieving outcomes that were not possible before our transformation. With our new capabilities and mindset, we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025, all while we built the foundations for significant growth for years to come.”