A spike in petrol prices at the pump is feared after the cost of a barrel of oil leapt above $100 for the first time in four years.
The Straight of Hormuz is at a standstill amid the Middle East conflict, which means there is major uncertainty hanging over short-term supply.
Iran‘s Revolutionary Guard has threatened to ‘set ablaze’ any Western tanker that attempts to navigate the strait, meaning hundreds of ships laden with oil have amassed outside it.
For the first time since war broke out, the effect of the disruption was felt acutely this morning when the price of a barrel of Brent crude was up almost 24 percent.
About a fifth of the world’s oil supply is usually shipped through the Strait of Hormuz, but traffic through the narrow passage has all but halted since the war started a week ago.
Petrol prices at the pump are likely to surge as the cost of the oil filters through to consumers.
UK Chancellor Rachel Reeves will participate in an emergency meeting of G7 finance ministers this afternoon to discuss the economic impact of the US-Israel war with Iran, including the rising price of oil.
US President Donald Trump acknowledged the economic shockwaves that the conflict is having, but insisted temporary price rises are a small price to pay for eliminating Iran’s nuclear threat.
Oil tankers anchored outside the Strait of Hormuz
