Oil prices hit $100 a barrel for the first time since May, according to BBC, as the escalating conflict in the Middle East reignited fears over global energy supplies. Brent crude – the global benchmark for oil prices – rose more than 5% on Thursday after several days of increases, driven by the United States stepping up military strikes against Iran.
Supply Disruptions
The price spike was triggered by Houthi militia attacks on oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz. On Thursday, Iran's Islamic Revolutionary Guards Corps said three tankers had abandoned an attempt to pass through Hormuz after an explosion aboard one of them caused it to catch fire, according to BBC. A temporary ceasefire between the US and Iran has failed, and this week US Secretary of State Marco Rubio said the people in charge in Iran were "not ready to make a deal."
Broader Energy Market
Gas prices have also risen steadily over the past month. The benchmark UK gas price is currently at around 150p per therm, up from around 98p per therm on 26 June, representing a sharp increase over the period.
| Metric | Value on 26 June | Value on 23 July | Change |
|---|---|---|---|
| UK benchmark gas price (per therm) | 98p | ~150p | +53% |
Price Outlook
The conflict-driven rally has pushed Brent crude back to the psychologically important $100 level, a price not seen since May. With the US-Iran ceasefire collapsed and Houthi attacks threatening Red Sea shipping, supply risks remain elevated. Traders and procurement teams should monitor further developments in the Strait of Hormuz and potential diplomatic moves, as any escalation could spur additional volatility in both crude and natural gas markets.
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