The price of oil has risen by more than 2% in a single day, following a warning from US President Donald Trump that new attacks on Iran are imminent. The Hormuz Strait, a vital shipping route that connects the Middle East to global markets, has been closed again due to increased tensions in the region.
The UK Government has been monitoring the situation closely, with the Foreign Office advising British nationals to exercise caution when travelling to Iran. The organisation has also warned of potential disruptions to air and sea travel in the region.
Analysts believe that the threat of new attacks on Iran has caused concern among global investors, leading to a surge in oil prices. Brent crude, a key benchmark for the global oil market, rose by 2.4% to $71.40 per barrel, while West Texas Intermediate (WTI) crude gained 2.1% to $64.20 per barrel.
The Hormuz Strait, which is only 21 miles wide at its narrowest point, is a critical waterway that carries around 20% of the world's oil exports. The closure of the strait would have significant implications for global energy markets and economies that rely heavily on oil imports.
The UK's Department for Business, Energy and Industrial Strategy (BEIS) has been working closely with the international community to mitigate the impact of any potential disruptions to the global oil supply. A spokesperson for the department said: 'We are monitoring the situation closely and are working with our international partners to ensure that global energy markets remain stable.'