The International Atomic Energy Agency (IAEA) has urged Iran to resume nuclear site inspections following a series of bombings at its Natanz uranium enrichment facility. The IAEA, which is responsible for monitoring Iran's nuclear programme, said that the resumption of inspections was crucial for maintaining international trust and cooperation.
The bombings, which took place in July, have sparked concerns about the potential impact on global trade, including with the UK. According to a report by the Bank of England, any disruption to global oil supplies could lead to higher prices and inflationary pressures, affecting household budgets and businesses alike.
Analysts at Capital Economics estimate that a 10% increase in Brent crude oil prices would result in an additional £1 billion cost for UK households over the course of a year. This is on top of existing price increases due to the ongoing COVID-19 pandemic.
The IAEA's call for inspections comes as global oil prices have already risen by around 10% since the start of the year, driven in part by concerns over Iranian supply disruptions and Middle East tensions.
FTSE 100 energy companies such as BP and Shell have seen their share prices rise in recent weeks as investors bet on higher oil prices. However, analysts warn that any significant increase in prices could be detrimental to the UK economy, particularly for households and businesses already struggling with rising costs.