Iran-US Conflict Drives Global Oil Prices to Four-Year High

Global oil and gas prices have hit a volatile patch since the Iran-US conflict began 200 days ago, with UK gas prices spiking to a four-year high. The war has caused energy bills, petrol and diesel prices, and inflation to rise in the UK and elsewhere, with further increases anticipated.

The Energy and Climate Intelligence Unit (ECIU) warns that households will struggle with these rising costs, especially those already struggling with the cost of living. Jess Ralston, Head of Energy at ECIU, noted that gas prices have hit a 4-year high, with petrol and diesel costs already climbing.

The Energy Crisis Commission also warned that the UK is 'dangerously underprepared' for future energy shocks. To mitigate this, they recommend reducing dependence on volatile oil and gas markets through electrification and renewables. They argue that more drilling in the North Sea won't bring down bills or reverse its long-term decline.

Instead, they suggest accelerating the rollout of heat pumps, electric vehicles, and homegrown wind and solar power to increase energy security and lower exposure to global crises and price volatility.