The price of crude oil has plummeted in the past 24 hours, with Brent crude dropping by over 10% to around $65 per barrel. The significant price drop has been attributed to the US's decision to halt its military strikes against Iran, which were launched in response to the country's drone attack on a US-led coalition in Iraq. The move has sent shockwaves through the global energy market, with oil stocks experiencing a significant downturn. In the UK, the FTSE 100 index has experienced a mixed reaction, with some energy companies seeing their share prices drop by as much as 5%.
The UK's oil and gas industry has expressed concern over the price drop, with the Oil and Gas UK trade association warning that it could have a significant impact on the country's energy producers. The association's chief executive, Deirdre Michie, stated that the price drop could lead to a reduction in investment in the UK's oil and gas sector.
The Foreign Office has advised British nationals to exercise caution when travelling to Iran, citing the ongoing tensions in the region. The UK Government has not commented on the US's decision to halt its military strikes, but a spokesperson for the Department for Business, Energy and Industrial Strategy said that the Government would continue to monitor the situation and provide support to UK energy producers if needed.
The price drop is likely to have a significant impact on the UK's fuel prices, with the AA predicting that petrol and diesel prices could drop by up to 5p per litre in the coming weeks. The UK's fuel prices are closely tied to the global oil price, so any significant drop in prices is likely to have a positive impact on motorists.