Oil Price Passes $100 a Barrel for First Time Since 2022 Amid US-Israel War with Iran | BBC News

Why It Matters

The surge in oil prices threatens to lift global inflation and strain economies already coping with high energy costs, while coordinated G7 action may be required to stabilize markets.

Key Takeaways

• Oil prices breach $100/barrel as Hormuz closure tightens
• Asian markets plunge, Japan and South Korea down 5‑8%
• G7 finance ministers convene emergency meeting on energy crisis
• Iran's missile and drone attacks hit UAE, Bahrain infrastructure
• IEA may release strategic reserves, echoing 2022 Ukraine response

Summary

The BBC report details how crude oil has surged past $100 a barrel for the first time since 2022, driven by the escalation of the US‑Israel conflict with Iran and the effective shutdown of the Strait of Hormuz.

Brent futures jumped to $118 before settling around $107, prompting a 20% intra‑day spike as Asian markets opened. Japan, South Korea and China saw equity indices tumble 5‑8%, with Japan halting trading temporarily. European bourses fell 2‑2.5%, reflecting exposure to the same supply shock.

Iran launched fresh missile and drone strikes on UAE, Bahrain and Gulf facilities, injuring civilians and igniting a fire at a Bahrain refinery, which declared force majeure. NATO‑member Turkey dispatched six F‑16s to northern Cyprus, while G7 finance ministers, including UK Chancellor Rachel Reeves, convened an emergency virtual meeting with the IEA chief to discuss coordinated responses.

Analysts warn that prolonged hostilities could reignite inflationary pressures, forcing central banks to tighten policy and prompting the IEA to consider releasing strategic oil reserves, as it did after Russia’s invasion of Ukraine. The price shock also threatens cost‑of‑living measures in the UK and could reshape global energy security strategies.

Original Description

The benchmark oil price has passed $100 a barrel for the first time since 2022, as the war in the Middle East enters a 10th day.

US President Donald Trump said the "short term" price increase is a "a very small price to pay" for world peace.

Meanwhile, Iran has named Mojtaba Khamenei - the son of Ayatollah Ali Khamenei, who was killed nine days ago by US-Israeli strikes - as its new supreme leader.

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