Global gas prices have surged to their highest level since the war on Iran began, as renewed fighting around the Strait of Hormuz stokes fears of further disruption to world energy markets. Oil prices have followed suit, reaching $95 a barrel today – a spike that threatens to push up fuel costs for UK households just as the government received welcome news that inflation has fallen to 2.6%.
The escalation in the Persian Gulf prompted Donald Trump to issue a chilling red-line threat on Wednesday, with the US president laying down an ultimatum as oil prices went haywire. The Strait of Hormuz, a narrow waterway through which about a fifth of global oil passes, has become a flashpoint in the ongoing conflict between the US-led coalition and Iran.
“Global gas prices hit highest since Iran war start; oil at $95 amid Strait of Hormuz fighting, Trump issues threat.”
Fighting in the region has intensified in recent days, raising the prospect of supply blockages that could send prices even higher. The $95-a-barrel mark is the highest since the war started, according to Channel 4 News, and analysts warn that sustained disruption could push petrol and heating bills up across Britain.
For the UK government, the timing is particularly awkward. Earlier this week it celebrated inflation dropping to 2.6%, a sign that the cost of living crisis may be easing. But rising energy prices – driven by geopolitical turmoil rather than domestic policy – risk reversing that trend. The Bank of England will be watching closely, as any sustained increase in fuel costs feeds through to wider inflation.
Trump’s threat, though not detailed in the reports, signals that Washington is prepared to escalate further to protect shipping lanes. The question now is whether Iran will back down – or whether the fighting will widen, sending oil prices beyond $100 and reigniting the inflationary pressures that have plagued Western economies.
For British motorists and households already squeezed by high energy bills, the developments in the Gulf are a stark reminder that the global economy remains dangerously exposed to events half a world away.