Shares in battered BP fall 11%

Shares in battered oil giant BP plunged by as much as 11 per cent earlier after hitting a 14-year low in New York trading overnight, amid intensifying political attacks on the group in the United States.

BP shares in London plummeted to levels not seen since 2003 in the sell-off, despite assurances from the firm it was "not aware of any reason" for the sudden slump on Wall Street.

It released another update on the Gulf of Mexico oil spill, saying that the cost of the clean-up and containment efforts had now hit £979 million.

BP is facing mounting pressure from President Barack Obama over its response to the oil spill, with the attacks on the company becoming increasingly aggressive.

Concerns have been raised in the UK over the language used, with warnings that it could damage transatlantic relations.

London mayor Boris Johnson said the "anti-British rhetoric" was becoming a matter of "national concern". He said the company was paying "a very, very heavy price" for what had been an accident, and pointed out that UK pension funds had a "huge exposure" to BP.