Brent crude surged above $100 (£75) a barrel after attacks on Saudi oil tankers in the Red Sea raised fears of a wider disruption to global energy supplies.
Prices jumped 7% on Thursday before easing slightly on this morning, with Brent still heading for a weekly gain of around 13%. Oil has climbed nearly 40% during July as tensions between the US and Iran have intensified.
The latest rise followed attacks by Iran-aligned Houthi forces on two Saudi tankers near the Bab el-Mandeb Strait, a major route linking the Red Sea with the Indian Ocean.
The disruption comes as tanker movements through the Strait of Hormuz have already fallen sharply. Together, Hormuz and Bab el-Mandeb handle roughly a quarter of global oil supplies.
Any prolonged interruption would increase shipping, insurance and fuel costs while forcing some tankers to take longer routes.
The immediate impact for UK households is likely to be felt at petrol stations, where changes in wholesale oil prices can feed through within weeks.
The RAC has previously warned that sustained $100 oil could push average petrol prices towards 150p a litre and diesel close to 180p.
Higher transport costs would also add pressure to food prices, logistics and wider inflation, potentially making it harder for the Bank of England to cut interest rates.
The impact on household gas and electricity bills is less direct but a prolonged energy shock could lift global gas and liquefied natural gas prices. That would increase wholesale purchasing costs for UK suppliers and put upward pressure on future Ofgem price caps.
Britain’s July price cap has already risen by 13%, largely because of higher wholesale costs linked to conflict in the Middle East.
Further disruption would leave households and businesses facing another period of volatile energy prices as markets assess whether the attacks remain contained or develop into a wider supply crisis.
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