Oil Prices Soar Above $100 a Barrel Amid Middle East Conflict
The price of Brent crude oil has surpassed $100 a barrel for the first time since May, sparking concerns about the impact of intensifying hostilities in the Middle East on the global economy.
The upward pressure on prices began last week and has continued despite US claims of peace progress following several false starts.
A key factor contributing to the increase is the loss of Iranian tanker capacity, which would have served Chinese orders. The Strait of Hormuz, controlled by Iran, accounts for a fifth of global oil and natural gas shipments.
The hostilities across the Middle East are preventing usual supplies of oil and natural gas to international markets, leading to higher wholesale gas prices in the UK - 125% higher than in September last year.