Oil prices have maintained their gains amid escalating tensions between the US and Iran, as well as a blockade of major oil ports in Saudi Arabia by the Houthi rebel group. The price of Brent crude oil rose to $104.50 per barrel yesterday, a 10% increase over the past two weeks. This surge in oil prices is largely attributed to the escalating tensions between the US and Iran, following the US's decision to deploy an aircraft carrier to the region. The Houthi blockade of major oil ports in Saudi Arabia has also contributed to the price increase, as it has disrupted oil exports from the country.
The UK's Foreign Office has advised British nationals against all travel to Yemen, where the Houthi rebels are based, citing an 'increased risk of terrorism, kidnapping and armed conflict'. The Foreign Office has also advised against all travel to parts of Saudi Arabia where the blockade is in place, stating that 'the security situation remains volatile'. The ongoing tensions between the US and Iran, as well as the Houthi blockade, are set to continue to impact global crude oil prices.
The UK Government has been monitoring the situation closely, with a spokesperson stating that 'we are aware of the ongoing tensions between the US and Iran, and the impact it has on global oil prices'. The spokesperson added that 'we will continue to work with international partners to promote stability in the region and ensure the free flow of oil'. The UK's dependence on imported oil means that any increase in global oil prices will have a significant impact on the country's economy.