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Brent crude tops $101 as US-Iran tensions and Houthi attacks escalate
Brent rose more than 3% to above $101, while Dutch gas climbed nearly 4% to €78.73 per megawatt hour and the Bank of England warned energy prices could push inflation and rates higher.
Oil prices pushed above $100 a barrel for the first time since July as tensions linked to the US and Iran escalated, including a US report that it destroyed multiple Iranian tankers in the Gulf and Houthi attacks on Saudi cities. Guardian Business said Brent crude climbed more than 3% to top $101.
The wider energy complex also moved higher, with UK and mainland Europe gas prices surging. According to the report, the Dutch gas benchmark rose almost 4% to €78.73 per megawatt hour, the highest since January 2023, while the British contract rose 7.77 pence to 196.57 pence per therm, the highest since December 2022.
The article said Bank of England Governor Andrew Bailey warned that the latest rise in oil prices is putting pressure on inflation and interest rates, noting that the risks are on the upside given energy price moves.
In the UK, the higher oil and fuel costs are already feeding through to households, the report added. It cited the AA data showing petrol averaged 166.2 pence per litre on Tuesday, the highest in four years, and said Ofgem’s energy price cap is set to rise 4% in October, with Oxford Economics estimating it could increase a further 13% in January.
Latest closeWTI crude $94.28 ▲3.1%|Brent $99.39 ▲3.2%