Brent crude has surged past $100 a barrel once more, marking a significant escalation in oil prices following a fresh outbreak of violence in the Middle East. Thursday's price hike, coupled with a sharp increase from $95 a barrel the previous day, brings fears that global oil supplies could soon face substantial disruption. According to data, Brent crude has now surpassed its two-month threshold, hitting $104.85 per barrel by 15:00 BST on Thursday, 22 July 2026.
The escalation of tensions in the region stems from a recent Houthi militia attack on two Saudi Arabian oil tankers, identified as the Encelia and Layla, which were allegedly in violation of the group's naval blockade in the Red Sea. The Houthis claimed responsibility for the assault, utilising ballistic missiles, cruise missiles, and drones to target the vessels. This latest incident heightens concerns over the safety of critical shipping lanes that facilitate global energy transport.
The renewed price surge represents a stark shift from recent trends. Brent crude previously touched $126 a barrel in April 2026 during heightened hostilities between Iran and US-led coalitions, which severely curtailed fossil fuel exports through the Strait of Hormuz. Following this peak, prices had stabilised below $100 per barrel by late May before plummeting to as low as $71 at the beginning of July amidst hopes for a regional ceasefire.
The current upward trajectory in oil prices is attributed to the collapse of the US-Iran memorandum of understanding, which initially fostered optimism for de-escalation. With ongoing hostilities in the Gulf, global energy markets are now facing renewed instability. The UK, heavily reliant on imported oil, may experience increased fuel costs and heightened inflationary pressures as a direct consequence of this escalation.
The UK Government will closely monitor developments, with implications extending to foreign policy and energy security. The FCDO is likely to review its travel advice for the region, specifically maritime routes, due to the increased risk of maritime incidents. British nationals in or transiting through affected areas are advised to remain vigilant and adhere to FCDO guidelines as the geopolitical landscape remains volatile.