The ongoing conflict in the Middle East could send the price of Brent crude oil - already reaching six month highs - to near-$100 a barrel.

The escalating tensions sent the oil price to $92 dollars a barrel on Friday, but analysts expect that to touch $95 - and possibly more - depending on Israel's response to the Iranian attacks.

Consumers will be hit hard in coming weeks if conflict grows, with petrol increasing to more than £1.50 a litre, according to the RAC.

The average price hasn't been more than £1.50 a litre since November, as the Competitions and Markets Authority crackdown on retailers profit margins.

Giovanni Staunovo, a commodities analyst at UBS, said: "Oil prices might spike at the opening, as this is the first time Iran struck Israel from its territory.

"How long any bounce lasts will also depend on the Israeli response."

FTSE 100

The UK's flagship share index, the FTSE 100, was down 23-points at 7,972 shortly after opening this morning.

Brent crude oil futures were down 0.59%, trading at $89.92 a barrel.

Companies reporting today

  • Ashmore Group - Q3 Assets Under Management Statement
  • PageGroup - Q1 Trading Statement
  • Sirius Real Estate Ltd - Full Year Trading Statement

More like this…

View all