Oil nears highest price since start of Iran war

What’s Happening

Listen up: The US-Israel Iran war has halted almost all traffic in a key waterway and the price Brent crude has surged.

Oil nears highest price since start of Iran war 11 minutes ago Save Add as preferred on Google Faarea Masud and Nick Edser , Business reporters The global benchmark Brent crude oil price has hit $119 (£90) per barrel, close to its highest since the start of the US-Israel war with Iran. Responding to the US-Israel air strikes which began on 28 February, Iran has effectively blocked the Strait of Hormuz, a key passage for ships carrying oil. (wild, right?)

Wholesale oil prices have surged since and car fuel prices have jumped to their highest in years.

The Details

Countries are responding differently to rising oil prices , with Australia making bus travel free while Egypt asks shops, restaurants, and cafes to close early to cut energy use. The global benchmark oil price is a contract to buy a barrel Brent crude one month from now.

Its price pushes up the price of car fuel in turn, as oil is a key ingredient. In the US, petrol prices at the pump topped $4 a gallon for the first time in nearly four years, according to the AAA motoring organisation.

Why This Matters

In the UK, petrol has hit 152. 8p a litre, its highest in two years and around 20p more than the start of the war, according to the RAC motoring organisation. The average diesel price rose to 182.

Market watchers are paying close attention to developments like this.

Key Takeaways

• 77p, its highest level since December 2022 and 40p more than at the start of the war.
• Average energy bills in the UK are also forecast to rise an average of £288 a year from July for a typical dual-fuel household.
• Last shipment of jet fuel Airlines meanwhile have also been affected, as the price of jet fuel surges .

The Bottom Line

The last shipment of jet fuel in transit from the Middle East to the UK is because of arrive this week, according to data firm Vortexa. The shipment, first reported Times, is because of arrive on Thursday or Friday.

Is this a W or an L? You decide.