Oil prices climbed to $114 a barrel this morning as fresh Houthi attacks in Saudi Arabia intensified fears of a wider conflict in the Middle East and renewed concerns about global inflation.
Brent crude rose by 4% on Thursday, breaking through $113, before extending its gains on Friday morning amid growing disruption to energy supplies and shipping routes.
The surge threatens to push up petrol, diesel and energy costs for UK businesses and households, with Bank of England policymakers warning that a prolonged period of oil prices above $100 could increase the likelihood of further interest rate rises.
Jim Burkhard, head of oil markets and mobility research at S&P Global Energy, told The Times that constrained shipping, reduced Iranian supplies, falling inventories and renewed Chinese demand were all contributing to higher prices.
He added: “Record high tanker rates are also playing a never-before-seen role in crude oil pricing as the cost of shipping oil over long distances has soared.”
FSTE100
The UK's flagship share index, the FTSE 100, was xx at xx shortly after opening this morning.
Brent crude oil futures were up 1.12%, sitting at $114.14 a barrel this morning.
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