European Fuel Prices Soar Above $100 Amid Middle East Conflict
Fuel prices in Europe have continued to rise as oil prices climbed above $100 amid the escalating war in the Middle East. The European Commission's Weekly Oil Bulletin reported that Brent crude settled at $101.21 a barrel on Wednesday, its highest close since May.
The conflict in the region has disrupted shipping and raised concerns about oil supplies through the Strait of Hormuz, putting pressure on motorists and prompting governments to extend or consider measures to cushion the effect.
National data show further increases at filling stations in several major European markets. In Italy, petrol prices have reached about €2.05 ($2.39) per liter, while diesel is around €2.17. The Italian government has extended a temporary 17-cent reduction in diesel excise duties to contain the effect of rising fuel costs.
The European Central Bank raised its policy interest rate to 2.50% on Wednesday, citing renewed inflationary pressure linked in part to the energy shock. The ECB also raised its 2026 inflation forecast to 3%, underscoring the potential effect of higher energy costs on the euro area economy.