Markets had been betting on calm, with a 60-day ceasefire in the works, and prices had quietly settled on the assumption that the worst was over. But the recent strikes blew that hope apart, and investors dumped cryptocurrencies in a hurry.
Ofgem confirmed that its price cap will rise by 13 per cent from July 1, pushing the typical annual household bill to around £1,862 - an increase of £221 on current levels. Analysts now warn that costs could climb further in the autumn, with forecasts suggesting a further rise to around £1,899 for the October-to-December period as colder weather increases demand and geopolitical tensions continue to unsettle energy markets.
Silver remained inside a consolidation range with some volatility as investors continued to assess the geopolitical developments in the Middle East.
Memorial Day weekend is arriving with the most expensive gasoline Americans have seen in four years, and the supply data suggests relief is not coming soon. CNBC energy reporter Pippa Stevens, speaking on Closing Bell Overtime on May 22, 2026, laid out a stark setup: gas prices are up more than 60% since the beginning of the year, and US gasoline stocks have now declined for 14 straight weeks. If shipping traffic through the Strait of Hormuz does not normalize, Stevens warned, "the national average could be heading towards $5 per gallon."
“Those stories are largely politically driven by governmental authorities who are trying to pressure an end to the war, and no better way to get people out than tell them that they can't get to their summer holiday,” he told Fortune. “Not only has demand not slowed for private aviation, since fuel prices went up and the war started, it's actually gone up slightly,” he says. “Aviation is up this year in terms of total demand, total hours flown, total volume of arrivals and departures, on a global basis.”
Official figures showed GDP grew by 0.3 per cent during the month after a 0.4 per cent rise in February, while the economy expanded by 0.6 per cent across the first quarter of 2026. The stronger-than-expected performance came even as global markets were rattled by surging oil prices, mounting instability in the Middle East and growing fears of a prolonged energy shock following the conflict involving Iran. Investors welcomed the figures as evidence that the British economy had so far remained more resilient than many analysts predicted.
The Red Sea cuts spurred companies and governments to look for alternate routes, and the Strait of Hormuz seemed promising. Then the US and Israel attacked Iran, cable projects were halted, and now the world is looking elsewhere once again.
The dollar index rose on Tuesday, reversing previous losses as renewed doubts over the durability of the US-Iran ceasefire revived demand for the currency. Risk appetite deteriorated after President Donald Trump rejected Tehran's latest proposal and warned that the ceasefire was "on life support," raising fears that tensions could intensify again.
Falling oil prices and easing inflation concerns pushed bond yields and the dollar lower, supporting gold prices. The 10-year Treasury yield sits at 4.4%, and softer real yields lower the opportunity cost of holding a non-yielding asset like bullion.
