US-Iran Conflict Sends Oil Prices Soaring Above $100 Per Barrel
Oil prices surged on Wednesday and Thursday as tensions between the United States and Iran intensified in the Gulf, reaching above $100 per barrel. The conflict led to the effective closure of the Strait of Hormuz, preventing oil and gas supplies from reaching global markets.
The BBC reported that US and UK long-term borrowing costs surged to their highest level in decades as energy prices rose sharply on wholesale markets. In the UK, natural gas prices rose above 200p a therm for the first time since the end of 2022.
Chris Beauchamp, chief market analyst at trading platform IG, warned that investors worldwide are waking up to the crisis in oil markets, with energy prices and borrowing costs adding pressure on financial markets. The European Central Bank raised its key interest rate for the second time in 2026 by an additional 25 basis points, bringing the main rate to 2.65%.