Oil Holds Near $100 as the Gulf War Grinds On
Brent crude held close to $100 a barrel on Friday, easing only slightly after surging past that level on Thursday for the first time since May, and remains up around 13 per cent on the week. The retreat was modest: prices stay elevated as Houthi attacks on Red Sea tankers and nightly American strikes on Iran keep a hefty risk premium on oil. US pump prices have climbed above $4 a gallon.
The twin threats to the Strait of Hormuz and the Red Sea — through which a large share of the world’s crude and refined fuel passes — have driven the sharpest energy shock since the war began in February. Refined products such as diesel and petrol face the tightest squeeze, and war-risk insurance has multiplied. Analysts warn that a sustained loss of Gulf supply could push Brent well beyond its 2022 peak. For British households, the danger is that the recent relief from falling inflation proves short-lived. Watch the oil price into next week and any move by producers or the West to steady it.