Oil price across UK at near two-and-a-half-year high and could raise further

It appears Donald Trump’s attempts to calm markets have been paused.

After his comment this afternoon that he will only accept “unconditional surrender” from the Iranian regime, oil price reached a near two-and-a-half-year high. 

At $91.28 a barrel, the benchmark Brent crude has not been this expensive since October 2023. 

In recent days, the Trump adminstration had lifted sanctions and proposed US Navy escorts for tankers in an effort to assuage market fears. 

None of it has worked. 

Qatar’s energy minister has warned that it could jump to $150 a barrel, an increase that could see a litre of petrol jump to around £1.90, according to the Energy and Climate Intelligence Unit. 

Wholesale gas prices, which British electricity prices are tethered to, have remained not far off 130 pence a therm, still more than 70% compared to a week ago. 

In the UK, the flagship FTSE 100 index of most valuable London Stock Exchange companies dropped a significant 1.28%.