Effects of extended conflict between US and Iran could also lead to higher interest rates and hit economic growth

• Business live – latest updates

• US-Israel war on Iran – live updates

The impact of the deadly and unpredictable conflict in the Middle East on the global economy will be felt most immediately, and keenly, through the rising cost of oil.

Prices jumped on Monday, as markets had their first opportunity to digest the weekend’s tit-for-tat attacks. A barrel of Brent crude oil was trading at about $79 (£59) by lunchtime in London, up about $6 or 8.5% on the day.