Brent crude, the global benchmark for oil prices, rose to $100 a barrel for the first time since May on Thursday, as renewed Middle East conflict raised concerns about energy supplies.

The move came after several days of increases, with the latest gains driven by an escalation in military activity involving the United States and Iran and fresh disruptions to shipping routes in the region.

Oil jumps after attacks in the Red Sea

Brent climbed more than 6% on Thursday, extending a run of higher prices. The latest escalation followed reports that the US had stepped up military strikes against Iran.

Oil prices also spiked after Houthi militia in Yemen attacked oil tankers in the Red Sea. The incidents threaten a key export route that Saudi Arabia has used to divert shipments and bypass the Strait of Hormuz.

Ceasefire falters and gas prices rise

Oil prices had been trending lower following a temporary ceasefire between the US and Iran. Prices fell back to levels last seen before the US and Israel began military action against Iran on 28 February.

That truce has not held. This week, US Secretary of State Marco Rubio said the people in charge in Iran were “not ready to make a deal”.

Gas prices have meanwhile continued to rise. The UK gas benchmark is currently around 150p per therm, up from about 98p at the end of June, extending a steady move higher over the past month.

Inflation risks and implications for interest rates

With energy costs rising, analysts warned the renewed conflict could put pressure on inflation in the UK and the US, feeding through into consumer prices.

Higher oil prices typically lift the cost of petrol and diesel. That can also affect the prices of other goods, as businesses may pass on increased transport and energy costs, including for items such as food.

Inflation has already eased in both countries. In the UK, it fell to 2.6% in the year to June, helped by slowing diesel and petrol prices. In the US, inflation was 3.5%.

However, questions remain about whether that slowdown will last. New figures released on Thursday showed UK petrol prices have risen by 5p a litre since the beginning of July, reaching almost £1.56. Diesel prices are at £1.72 a litre on average, according to the RAC.

In the US, average gasoline prices have also moved back above $4 a gallon, rising from $3.92 a month earlier, according to AAA.

Jonathan Raymond, an investment manager at Quilter Cheviot, said more expensive fuel and energy can “ripple through the wider economy”, increasing costs for businesses and feeding into prices for food and other goods. He added that this could add to pressure on central banks in their efforts to reduce inflation, potentially affecting decisions on whether rates are kept higher for longer.

Bank of England and Federal Reserve in focus

The Bank of England has held interest rates at 3.75% in its last four meetings. Paul Dales, chief UK economist at Capital Economics, said the bank would “almost certainly” hold rates again, but added that analysts still expect cuts next year if energy prices ease.

In the US, Kevin Warsh, the newly appointed chair of the Federal Reserve, told Congress last week that the central bank had “no tolerance to persistently elevated inflation”. President Donald Trump has pushed for borrowing costs to fall, having urged Warsh’s predecessor, Jerome Powell, to cut rates.

At Warsh’s first meeting last month, the Fed held US rates between 3.5% and 3.75%. Warsh also told Congress that the bank was committed to “restoring price stability” in the wake of the Middle East conflict affecting prices.

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24 July 2026

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I'm tired of WINNING 😭

Fine mess you got yourself into Don.!

Yep , diesel 2 baht higher since last week.

39 minutes ago, FlorC said:

Yep , diesel 2 baht higher since last week.

In my opinion, fuel is going to get significantly more expensive again.

The Houthis are threatening Saudi tankers, and Russia - formerly one of the world's largest diesel exporters - now has to import gasoline and diesel itself.

Anyone here think 4 months might turn into 4 years ❓

But don't call it a QUAGMIRE

Trump should be steal-elected for four more years, just for working so hard to steal the next election. 😄

pay no attention to the gas prices

Iran will be the happier of the lot with the USD100 price surge. They have 170 million barrels of oil afloat in tankers outside the Straits and past the US blockage. Iran economy will be not be affected for months and with this price surge, it will be a bonus into their war effort plus the tankers that still slipped through the porous US blockage. You are an idiot Trump. You constantly outwitted by Iran.

Trump doing his bit for the environment. Higher prices = reduced usage.

You'd think the doomsday cult would be happy, but alas...

Technically oil will go much much higher but not in a straight line. Go electric or get a horse and cart and forget

about the middle east forever.

34 minutes ago, koolkarl said:

Technically oil will go much much higher but not in a straight line. Go electric or get a horse and cart and forget

about the middle east forever.

Buying diesel or benzin for the car & pickup is only one part of the story. And for me personally peanuts.

Transport / logistics of all goods will make a bigger part. And that effects everybody and almost everything.

Electricity the same: I have PV with storage and pay nothing. But around 60% of Thailand’s electricity production relies on natural gas.

It's a bit too simple to think "forget about the middle east forever."

6 hours ago, JonnyF said:

Trump doing his bit for the environment. Higher prices = reduced usage.

The same thing is happening with housing.

There's higher prices all over the world.

And people are adapting by not using housing and sleeping in their cars and on the streets. 😲

freedom camps

The people most hurt by this will be low class americans. It won't effect me if they double oil prices. So it's kinda funny. 😄

Peace through Honor?

Victory through strength?

Way past that.

We're now at the Republican wackjobs <deleted> up and destabilizing the whole region phase.

it's only an excursion

Hopefully, American voters will punish Trump in the mid-terms. Dems need to relentlessly quote Trump boasting he would lower prices on Day 1 and then show a chart with practically everything being more expensive than it was on the last day of the Biden administration.