Last night’s attack on Iranian nuclear facilities by Israeli military planes has led to a surge in global oil prices. Iran holds around 10% of the world’s oil reserves and makes up roughly 5% of global production.
Prices for Brent Crude, the international benchmark, initially spiked by 12% following news of the attack, and while the market has subsequently cooled somewhat, this morning it remained 8.8% up at $75.48 per barrel, according to the Financial Times. Prices for US oil benchmark, West Texas Intermediate, rose 9%.
The average cost of a litre of UK unleaded currently stands at 139.89 pence, and while global market fluctuations will take time to trickle down to pump prices, consumers will no doubt be concerned this latest military entanglement will see fuel costs rise steeply.
Russian’s 2022 invasion of Ukraine saw retail prices rise by as much as 50p per litre, with this peak arriving in July of that year, about five months after that conflict began. Russia produces more oil than Iran, though, being the third largest country in this respect, responsible for roughly 12% of global crude-oil volume.
The price of gold, traditionally seen as a safe haven during times of political unrest, is up by around 1.5%.
