Global fuel markets surged after renewed escalation of conflict in the Middle East, pushing Brent crude to $100 per barrel — the first time since May. Prices climbed sharply after the United States intensified military action against Iran and following attacks by Iran-backed Houthi rebels on oil tankers in the Red Sea, which also threatened alternative export routes that avoid the Strait of Hormuz. Natural gas benchmarks rose alongside oil, with UK gas near 150 pence per therm, up from about 98 pence in late June.

Economists warn the Middle East fighting could sharply increase inflationary pressures worldwide because higher oil prices raise petrol and diesel costs, which in turn lift transport and food prices. The article notes recent impacts in developed countries: UK petrol and diesel prices have risen over the past two weeks to about £1.56 and £1.72 per litre respectively, and US average gasoline has surpassed $4 per gallon after being $3.92 a month earlier. US officials signalled a return to heightened tensions after a temporary ceasefire earlier reduced prices.

US Federal Reserve chair Kevin Warsh told Congress that prolonged high inflation would not be tolerated and the Fed remains committed to restoring price stability, while Fed policy rates were left unchanged in a recent meeting at 3.5–3.75 percent.