While the crisis in the Middle East rumbles on, political machinations in the UK have provided a further hit to UK asset prices this week.

These political developments are now crystallising in rising UK bond yields and a fall in sterling and UK equities.

The UK’s fiscal situation has been strained by both the political uncertainty and its exposure to rising energy prices.

While the UK imports just under 50% of its annual energy requirement, less than other G7 countries, it relies on fossil fuels for 77% of its energy.