Energy Prices Could Rise Again as Strait of Hormuz Disruptions Continue

The Bank of England's boss, Andrew Bailey, has warned that energy prices in the UK could rise even higher due to disruptions in the Strait of Hormuz. The key oil route remains largely closed after joint US-Israeli strikes on Iran led to an on-and-off blockade of the critical shipping corridor.

The closure has impacted 20 per cent of global oil shipments and liquefied natural gas exports, causing elevated energy costs to hit UK utility bills, petrol pumps, and food prices. The crisis in the Strait of Hormuz began on February 28th after joint US-Israeli strikes on Iran.

According to Mr Bailey, some oil is getting through, but not huge amounts. He stated that 'I think it's fair to say that we've got higher energy prices. They could be higher still, I think I would say.'