Aldi and Lidl enjoy record Christmas sales; Red Sea tensions lift oil price - business live

Key events

Oil prices rise after Iran sends warship to the Red Sea after Houthi ship attacks

The price of oil has surged by almost 2% in the first trading session of the New Year, after Iran sent a warship into the Red Sea.

The price of Brent Crude rose to almost $79 a barrel in early trading as tensions continue to rise in one of the world’s most vital shipping routes.

Iran sent a warship to the Red Sea following the US Navy’s sinking of three Houthi boats, killing 10 militants, to repel an attack on a Maersk container vessel over the weekend.

Attacks on boats transiting the route by Houthi rebels out of Yemen has forced shipping companies to use the alternative and much longer route around the southern tip of Africa instead of risking using the Suez canal to enter the Mediterranean Sea.

Kyle Rodda, senior financial market analyst at Capital.com, says:

“The prospect of escalating conflict in the region threatens energy supply stability through the important shipping channel, not to mention global economic activity, if it sparks broader hostilities through the Middle East.”

Introduction: Aldi and Lidl enjoy record Christmas sales as shoppers seek to stretch festive budgets

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Aldi and Lidl enjoyed record Christmas sales as shoppers turned to discount chains to stretch household budgets over the festive season amidst the cost of living crisis.

Aldi said that sales topped £1.5bn for the first time in the four weeks to Christmas Eve, with sales up 8% year-on-year, and has pledged to cut prices to keep up the pressure on rivals.

Readers Also Like: Edison acquires Cabin Scotland in all-cash deal

Meanwhile, Lidl said that its deluxe product range underpinned a 12% year-on-year sales increase in December, as shoppers sought a “touch of luxury at lower prices”.

Both chains said that Friday 22nd December, the last weekday before Christmas, proved to be a record trading day with Aldi, the UK’s fourth biggest chain, saying 2.5m customers used its stores for their full festive shop.

Last week, consumer card spending figures from Barclays showed that discount supermarket chains accounted for an all-time high 15.5% grocery spending last year, up a percentage point on 2022, as consumers looked for ways to reduce the cost of their weekly shop.