Brent Crude Surges Past $100 as Hormuz Closure Sparks Global Inflation Fears

The global energy market is bracing for an inflationary shock after renewed hostilities between the US and Iran effectively severed the Strait of Hormuz, driving Brent crude past $100 a barrel.

The sudden closure of the world's most strategic maritime chokepoint has triggered immediate panic across international supply chains. In the UK, motorists are warned of impending record pump prices, which threatens to devastate import-reliant economies across Europe and Africa.

The RAC automotive services group warned that the average price of unleaded petrol in the UK jumped by over half a penny overnight, climbing 5.6p since early July to hit 156.19p per litre. This has set off a chain reaction, with global central banks from the Bank of England to the Reserve Bank of Australia facing the prospect of undoing months of careful monetary tightening.