Global energy markets have seen a significant surge, with Brent crude reaching $100 per barrel for the first time since May. The more than 6% increase on Thursday follows intensified military activity involving the United States and Iran, alongside attacks on oil tankers in the Red Sea by Houthi militia.
The escalation marks a reversal of a previous downward trend in prices that followed a brief ceasefire. US Secretary of State Marco Rubio recently indicated that Iranian leadership remains unwilling to reach a diplomatic agreement, further destabilizing the outlook for energy security.
The rising cost of crude is already impacting consumers. In the UK, petrol prices have climbed by 5p per litre since early July, averaging nearly £1.56, while diesel has reached £1.72 per litre. In the United States, average gasoline prices have climbed back above $4 per gallon.
Economists warn that sustained energy price hikes could complicate efforts to control inflation. Jonathan Raymond, an investment manager at Quilter Cheviot, noted that higher fuel costs often permeate the broader economy, potentially forcing central banks to maintain or increase interest rates. While the Bank of England has held rates at 3.75%, and the US Federal Reserve has maintained a range of 3.5% to 3.75%, policymakers face mounting pressure to balance economic growth against the risk of persistent inflation.
Source: BBC News
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