Oil prices have risen after Iran seized a tanker off the coast of Oman, raising concerns fuel prices could increase.
The oil tanker was heading for Turkey on Thursday when armed men ordered it to sail to an Iranian port.
The price of Brent crude oil jumped by more than 2%, to $78.40 a barrel following the incident.
The price of Brent crude oil jumped by more than 2%, to $78.40 a barrel following the incident.
The BBC understands the Treasury has considered a rise of at least $10 (around £7.83) per barrel in the international price of crude oil and a 25% increase in the price of natural gas.
Europe, in particular, is now more dependent on exports of gas coming through the Gulf and the Straits of Hormuz.
The seizure of the oil tanker by Iran, reported by local state media as retaliation for the hijacking last year of the same vessel by the US, raises prospects of growing conflict in the Middle East, which could have a knock-on effect on UK fuel prices.
A rise in oil prices can lead to higher prices at the pumps and also drive higher inflation. Inflation, which measures the pace of price rises, has been falling in the UK and is currently 3.9%.
The average price of a litre fell below £1.40 on Thursday for the first time since October 2021, according to motoring group, the AA.
Oil prices have risen after Iran seized a tanker off the coast of Oman, raising concerns fuel prices could increase.
The price of Brent crude oil jumped by more than 2%, to $78.40 a barrel following the incident.
The oil tanker was heading for Turkey on Thursday when armed men ordered it to sail to an Iranian port.
The BBC understands the Treasury has considered a rise of at least $10 (around £7.83) per barrel in the international price of crude oil and a 25% increase in the price of natural gas.
The price of Brent crude oil jumped by more than 2%, to $78.40 a barrel following the incident.
The price of Brent crude oil jumped by more than 2%, to $78.40 a barrel following the incident.
The BBC understands the Treasury has considered a rise of at least $10 (around £7.83) per barrel in the international price of crude oil and a 25% increase in the price of natural gas.
Europe, in particular, is now more dependent on exports of gas coming through the Gulf and the Straits of Hormuz.
The seizure of the oil tanker by Iran, reported by local state media as retaliation for the hijacking last year of the same vessel by the US, raises prospects of growing conflict in the Middle East, which could have a knock-on effect on UK fuel prices.
A rise in oil prices can lead to higher prices at the pumps and also drive higher inflation. Inflation, which measures the pace of price rises, has been falling in the UK and is currently 3.9%.
The average price of a litre fell below £1.40 on Thursday for the first time since October 2021, according to motoring group, the AA.
#Oil #prices #rise #Iran #seizes #tanker
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
