Oil prices have surged to $100 a barrel for the first time since May as renewed fighting in the Middle East raises concerns over global energy supplies.
Brent crude, the international benchmark, jumped more than 6% on Thursday after several days of gains as the United States intensified military strikes against Iran. Prices were further pushed higher after Houthi militants in Yemen attacked oil tankers in the Red Sea, threatening a key trade route used by Saudi Arabia to bypass the Strait of Hormuz.
Gas prices have also continued rising, with the UK benchmark reaching around 150p per therm, compared with about 98p at the end of June.
Oil markets had previously eased following a temporary ceasefire between the US and Iran, returning to levels seen before military action by the US and Israel began on 28 February. However, the truce has collapsed, with US Secretary of State Marco Rubio saying Iran’s leadership was not prepared to reach an agreement.
The renewed conflict is fuelling fears of higher inflation across major economies. Rising oil prices could push up petrol and diesel costs, while businesses may pass increased transport and production expenses on to consumers through higher prices for everyday goods, including food.
via BBC
