Investors increased their bets on ​the Bank of England ‌raising rates in the coming months as ​global markets responded ​to the latest increase in ⁠tensions in the ​Strait of Hormuz and ​as Prime Minister Keir Starmer was battling to stay ​in power.

UK rate ​futures on Tuesday pointed to ‌around ⁠68 basis points of BoE policy tightening by December – approaching ​a full ​pricing ⁠of three quarter-point rate hikes – ​up from about ​56 ⁠bps on Monday.

Investors were pricing three European ⁠Central ​Bank rate hikes ​this year.