MANY MINDEDBrent crude tops $100 as Middle East strikes ripple into fuel and gas prices
Brent crude reached $100 a barrel for the first time since May, rising more than 6% in a single day, as the US stepped up military strikes against Iran and the broader Middle East conflict escalated. Houthi militia in Yemen attacked oil tankers in the Red Sea, a route Saudi Arabia had used to bypass the Strait of Hormuz. US Secretary of State Marco Rubio said Iran's leaders were not ready to make a deal.
The price move is already reaching consumers. UK petrol has risen 5p a litre since the start of July to nearly £1.56, with diesel at £1.72, per the RAC. US average gasoline surpassed $4 a gallon, up from $3.92 a month earlier, per AAA. UK gas prices sit around 150 pence per therm, up from about 98p at the end of June.
This is a setback for affordable energy. Higher oil and gas prices feed into transport, heating, and the cost of nearly every physical good that moves, working against the downward pressure that cheap renewables have been building. Inflation had been easing, at 2.6% in the UK and 3.5% in the US in June.
What to watch is whether the spike holds or fades with the conflict. Central banks are holding rates steady, the Bank of England at 3.75% and the Fed between 3.5% and 3.75%. The inflation and rate consequences remain analyst forecasts, not confirmed outcomes.
Source: BBC World