Iran war sparks record oil price spike as crude oil prices rise by more than 20% to above $100
The war in the Middle East caused a record rise in oil prices, with the cost of a barrel rising above $100 for the first time in years.
The G7 has been called to an emergency meeting to discuss firefighting options, including the release of oil reserves.
The fact that the Strait of Hormuz, through which approximately one-fifth of the world’s oil passes, is at a standstill means that there remains great uncertainty about short-term supply.
Iran’s Revolutionary Guard has threatened to ‘set fire’ to any Western tanker trying to pass through the strait, and hundreds of ships loaded with oil have gathered outside the strait.
For the first time since the start of the war, the impact of this disruption was felt acutely this morning, with the price of a barrel of Brent crude rising by almost 24 percent.
It took about a minute for the price to rise for the first 10 percent and another 15 minutes for the second 10 percent.
As higher costs are passed on to consumers, gasoline prices at the pump are expected to increase.
British Chancellor Rachel Reeves will attend an emergency meeting of G7 finance ministers, chaired by France, at 13:30 GMT to consider the economic impact of the war.
Explosions occurred after the weekend strike in Tehran
Oil tankers anchored in the Strait of Hormuz
Oil reserves are coordinated by the International Energy Agency (IEA), and the group’s 32 members hold stocks as part of a collective contingency system designed to ease oil price crises.
Three G7 countries, including the United States, have so far expressed support for a possible joint release, according to sources familiar with the talks, the FT reported.
US President Donald Trump acknowledged the economic shockwaves created by the conflict but insisted temporary price increases were a small price to pay for eliminating Iran’s nuclear threat.
