Oil prices hit $100 for the first time since May - BBC

What the report says

BBC News reported that Brent crude, the international oil benchmark, climbed above $100 a barrel for the first time since May after rising more than 6% on Thursday. The move came amid an escalation of the Middle East conflict, with the BBC linking the latest jump to intensified U.S. strikes against Iran and attacks by Yemen’s Houthi militia on oil tankers in the Red Sea.

According to the BBC, the tanker attacks raised concern over the security of a major export corridor used by Saudi Arabia as an alternative to the Strait of Hormuz. The article said oil had previously eased after a temporary U.S.-Iran ceasefire, but that truce has broken down. It also cited U.S. Secretary of State Marco Rubio as saying Iran’s leadership was not prepared to reach an agreement.

The BBC reported that gas and road fuel costs have also been moving higher. It said the UK benchmark gas price was around 150p per therm, up from about 98p at the end of June. RAC data cited in the report showed UK petrol up by 5p a litre since early July to nearly £1.56, with diesel averaging £1.72. In the U.S., AAA figures cited by the BBC put average gasoline prices back above $4 a gallon.

The development matters because energy prices feed into inflation through transport, heating and business costs. The BBC noted that inflation had recently eased in the UK and U.S., but analysts warned higher fuel costs could complicate central bank decisions on interest rates.