Oil prices hit $100 for the first time since May

What the report says

Nile Post, citing a BBC report, said Brent crude climbed to $100 a barrel for the first time since May after renewed Middle East tensions raised concern about global energy supplies. The report said the international oil benchmark gained more than 6% on Thursday after several days of increases, as the United States intensified strikes against Iran and a previous temporary ceasefire collapsed.

The article linked the latest jump to attacks by Yemen’s Houthi militia on oil tankers in the Red Sea. That route is significant because it is used by Saudi Arabia as an alternative pathway for exports that can avoid the Strait of Hormuz, one of the world’s most important oil transit chokepoints. Nile Post also reported that UK benchmark gas prices had risen over the past month, from about 98p per therm at the end of June to around 150p.

The report said higher energy prices could complicate efforts to control inflation in the UK, US and other economies. It noted UK petrol prices had increased by 5p a litre since early July to nearly £1.56, while diesel averaged £1.72, citing RAC figures. In the US, average gasoline prices were said to have moved back above $4 a gallon, based on AAA data.

Analysts quoted in the report warned that sustained energy costs can feed into transport, food and other consumer prices, potentially affecting central bank decisions on interest rates. The article said the Bank of England had kept rates at 3.75% in its last four meetings, while the US Federal Reserve held rates between 3.5% and 3.75% at its latest meeting.