The price of Brent crude oil has surged to $119 (£90) per barrel, nearing its highest level since the onset of the ongoing conflict involving the US, Israel, and Iran. This sharp increase follows Iran’s effective blockade of the Strait of Hormuz—an essential maritime route for oil transportation—prompted by recent US-Israel air strikes that commenced on 28 February. As a consequence, global fuel prices are climbing, with significant implications for economies around the world.
Rising Fuel Costs and Economic Responses
The escalation in oil prices has led to notable increases in fuel costs for consumers. In the United States, petrol prices have exceeded $4 per gallon for the first time in nearly four years, according to the AAA. Meanwhile, in the UK, the average price of petrol has reached 152.8p per litre, the highest it has been in two years and approximately 20p higher than before the conflict began. Diesel prices have also surged, averaging 182.77p per litre—40p more than at the start of the war.
The response from various nations has been varied, reflecting local economic conditions and energy needs. Australia has introduced free bus travel as part of its strategy to alleviate the impact of rising fuel prices, while Egypt has implemented measures asking shops, restaurants, and cafes to close early in an effort to conserve energy.
Jet Fuel Supply Concerns
The airline industry is also feeling the repercussions of soaring oil prices, particularly in the realm of jet fuel. A shipment of jet fuel arriving in the UK this week marks a significant event; this is the last cargo currently in transit from the Middle East. Historically, the UK has received multiple shipments simultaneously, making this absence unusual.
Mick Strautmann, a market analyst at Vortexa, noted that in 2025, there were typically eight cargoes en route from the Middle East to the UK. The UK government has asserted that jet fuel imports from other countries, including India, the USA, and the Netherlands, are ongoing; however, there are concerns that India’s current focus on Southeast Asia—driven by higher prices and reduced distances—could lead to a future supply crunch.
George Shaw, a senior insight analyst at Kpler, stated that the jet fuel shipment scheduled to arrive this week was loaded at a refinery in the Red Sea and did not traverse the Strait of Hormuz, which has become increasingly perilous.
Airlines Adapt to Rising Costs
Airlines are adapting to the rising costs of fuel in different ways. Air France-KLM is planning to raise long-haul fares to mitigate the impact of increased fuel prices. Similarly, Scandinavian carrier SAS has announced a reduction of 1,000 flights in April, alongside fare increases.
In contrast, British Airways’ parent company IAG has indicated that it does not plan to raise ticket prices immediately, having secured fuel at fixed rates prior to the conflict. EasyJet, however, has warned that ticket prices may rise toward the end of summer as its hedging agreements come to an end. Airlines UK has confirmed that UK airlines are not currently facing disruptions in jet fuel supply and continue to monitor the situation closely with fuel suppliers and the government.
Why it Matters
The surge in oil prices has far-reaching implications, not just for consumers at the pump but also for global economic stability. Rising fuel costs threaten to exacerbate inflationary pressures worldwide, impacting everything from transportation to food prices. As countries grapple with the economic fallout of escalating oil prices, the situation remains fluid, necessitating careful monitoring of geopolitical developments and their potential consequences on the energy market. The ability of nations to respond effectively to these challenges will be crucial in determining the trajectory of both their economies and the global market as a whole.
