Oil prices jumped to their highest since 2022 after a report that the US military is set to brief President Donald Trump on new plans for potential action in the Iran war.
Brent crude rose by almost 7% to more than $126 (£94) a barrel at one point, before falling back.
US Central Command has prepared a plan for a wave of “short and powerful” strikes on Iran to try to break the deadlock in negotiations with Tehran, news site Axios reported. The BBC has contacted US Central Command and the White House for comment.
Energy prices have been rising this week as peace talks appear to have stalled, with the key Strait of Hormuz waterway still effectively closed.
About 20% of the world’s oil and liquefied natural gas (LNG) usually passes through the strait and the conflict has sent global energy prices soaring.
Crude oil is a key ingredient in petrol and diesel, and the jump in costs since the start of the Iran war has pushed up pump prices for motorists.
In the UK, petrol currently costs an average of 157p a litre, according to motoring group RAC, which is 24p higher than before the start of the war. Diesel is at 188.5p a litre, up 46p compared with its pre-war price.
RAC head of policy Simon Williams said that while the price of petrol at the pumps has fallen, “our analysis of wholesale costs shows petrol is now more expensive for retailers to buy than at any time since the war began”.
“However diesel, which has come down by 3p a litre, is currently well below its highest wholesale price since the start of the conflict, so should fall further.”
But the potential impact is wider than just petrol and diesel prices. The UK government has warned people could face higher energy, food and flight ticket prices as a result of the war.
Some airlines have already started to raise fares or reduce flights. Fertiliser prices have also started to increase, which could have a knock-on effect on food prices. (BBC)
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