Saudi Oil Crisis Sends Global Energy Prices Soaring

Global energy prices have skyrocketed in recent days due to escalating tensions between Yemen's Houthis and Saudi Arabia, causing chaos for the oil industry. The conflict has resulted in a significant reduction in global oil supplies, contributing to a surge in petrol, diesel, and gas prices.

The global oil price is currently above $108 per barrel, up from $70 in June 2026 - a roughly 50% increase. This increase has led to average petrol prices in the UK exceeding 170p a litre, the highest since 2022. In the US, the cost of a gallon of petrol has risen from $3.80 in July to $4.32.

Analysts attribute the price surge to a reduction in global oil supplies due to the conflict in the Middle East. The Strait of Hormuz, a critical trade chokepoint, remains significantly obstructed despite US government assurances that fuel is flowing through it at pre-war volumes. Neil Quilliam of Chatham House estimates the pipeline could be closed for up to eight weeks for repair.