Middle East Conflict Sends Oil Prices Soaring Above $100 Barrel

The conflict in the Middle East continues to escalate, sending oil and gas prices soaring. The price of Brent crude has risen back above $100 a barrel, while the cost of natural gas has increased in wholesale markets. In the UK, natural gas prices have reached over 200p per barrel for the first time since late 2022.

The conflict between the US and Iran in the Persian Gulf has led to the effective closure of the Strait of Hormuz, preventing oil and gas supplies from reaching global markets. This has contributed to a sharp rise in energy costs, which analysts warn could severely weigh on the global economy if they continue.

US and UK long-term borrowing costs have also risen to their highest level in decades. Speaking at a Republican Party convention in Texas, President Trump said he did not think the fighting would end until after the US midterm elections in November. Analysts are increasingly concerned about the economic impact of higher oil prices.