Oil prices hit $100 for the first time since May
Oil prices have reached $100 per barrel for the first time since May due to escalating conflict in the Middle East and attacks on Red Sea shipping routes. The price surge raises concerns about renewed global inflation and increased costs for consumers.
Why it matters
Rising energy costs threaten to reverse recent progress in lowering inflation in the UK and US, potentially impacting household budgets and economic stability.
Share Save Add as preferred on Google Michael Race and Ben King , Business reporters Bloomberg via Getty Images Oil prices hit $100 a barrel for the first time since May 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 6% on Thursday following several days of increases as the US stepped up military strikes against Iran.
Prices spiked after Houthi militia in Yemen attacked oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz.
Gas prices have also risen steadily over the past month, with the benchmark UK gas price currently at around 150 per therm, up from around 98p at the end of June.
Oil prices had been falling following a temporary ceasefire between the US and Iran.
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