US-Iran Conflict Sends Oil Prices Soaring
Natural gas prices in Europe have hit their highest level since 2023, while oil prices reached a five-week high of $97 a barrel on Wednesday. The surge came as renewed attacks between the US and Iran raised concerns about an escalation of the conflict.
Brent crude, the international benchmark for oil prices, rose by as much as 2.5% to just above $97 a barrel before settling back to around $95 a barrel in London. Natural gas at the European TTF hub in the Netherlands exceeded 75 euros per megawatt-hour for the first time since February.
The price increase follows a fresh wave of US strikes on Iran, which added to investor concerns about further escalation between the two countries after a relatively quiet period in August.
Mike Bell, head of markets strategy at RBC BlueBay Asset Management, said: 'The perception that this conflict can be over by Christmas is fading fast.' This has moved the markets and is putting pressure on global bond and stock markets, with rising oil and gas prices reigniting concerns about inflation.