Update: Oil falls below $100 a barrel on reports Iran ‘makes strait of Hormuz offer’; UK government borrowing paints ‘dismal picture’ – business live

The Guardian — Business has reported on “Update: Oil falls below $100 a barrel on reports Iran ‘makes strait of Hormuz offer’; UK government borrowing paints ‘dismal picture’ – business live,” presenting it as the central development in the source material available for this brief.

The rising cost of servicing the UK national debt pushed up borrowing last month, while oil is dropping, and M&G holds Bond Vigilantes Forum in London How much ‘headroom’ might John Healey still have to keep within the government’s fiscal rules? The report also notes that That’s the question dogging Westminster and the City. “The chancellor has probably lost about half the headroom he inherited, leaving it between £10bn to £15bn. As long as the headroom is in double figures, he is expected to probably be able to avoid topping it up, but the drop in headroom means any additional day-to-day spending, such as on defence or cost of living, is expected to have to be paid for by higher taxes. “What’s more, if the recent rise in energy prices is sustained through the next few months, household energy bills could rise by another 25% in January, which would take them above the level that the previous government capped them at. That would only further increase the pressure to act on cost of living by temporarily subsiding energy bills. “The PM and chancellor is expected to be feeling quite claustrophobic today as the walls close in around them. Borrowing costs keep climbing, while borrowing itself is outpacing the teeny rise in tax receipts. Everyone can diagnose the problem, but it’s far from clear that a PM who swept to power promising good things for all is capable of holding a fractious Labour party together to carry out the tough work needed.”

Any statements, estimates or characterisations remain attributed to the people or organisations identified by the source. The excerpt alone does not provide a complete documentary record or necessarily include responses from every party involved.

Official statements or subsequent reporting may add context as the story develops. For now, this account is confined to information directly supported by the provided headline and excerpt.