Brent crude hits $114 per barrel, highest since May
What's the story
Crude oil prices have soared by 4%, with Brent crude hitting $114 per barrel, its highest since May 2026. The spike is largely due to fears of potential oil supply disruptions in the Middle East. This has raised concerns about further volatility in global energy markets and its impact on input costs and overall inflation.
Market reaction
Iran's potential attacks on Gulf AI infrastructure raise concerns
Peter McGuire, a global oil expert, attributed the market's response to fears of attacks by Iran on Gulf-based AI data centers and critical infrastructure.
Tensions have escalated across West Asia after reports emerged that the US and Israel are considering new strikes on Iran. This comes as the US Midterm elections get underway.
President Donald Trump had previously said that the war with Iran could end soon, predicting a sharp fall in global oil prices once the conflict concludes.
Political impact
Rising fuel costs are a political headache for Trump
With less than two weeks to go before the US midterm elections, rising fuel costs are becoming a political headache for President Trump.
Analysts are skeptical whether his recent measures to cut prices will provide any real relief to motorists ahead of polling day.
Average petrol and diesel prices have fallen from a month ago but remain significantly higher than a year earlier, according to the American Automobile Association (AAA).
Supply concerns
Yemen's Houthis launch more attacks in Saudi Arabia
Brent crude oil prices have hit their highest since May, after Yemen's Iran-aligned Houthi group launched more attacks in Saudi Arabia.
The strikes have raised fears of a wider conflict in the Middle East and potential disruptions to oil supplies from this key exporting region.