Oil price surges past $111 to a five-month high before retreating on an unconfirmed Qatar-Pakistan peace plan for Iran

Qatar and Pakistan have reportedly tabled a mediation proposal that already has US approval and Iran's consent. Twenty-four tankers were reportedly targeted in the Strait of Hormuz last week. Deutsche Bank analysts rate the odds of a diplomatic deal as low.

American drivers pay $4.28 a gallon, more than a dollar up on last year.

UK unemployment unexpectedly dipped to 4.7%, but vacancies suffered their biggest fall this year.