Soaring oil prices have pushed UK inflation to a five-month high, with consumer prices rising 3.1% in the year to August. Motor fuel prices saw a substantial increase, with petrol reaching 161.3p per litre and diesel hitting 181.8p.
Brent crude is now trading at $108 a barrel, marking a 78% increase since the beginning of the year. This surge follows the closure of Saudi Arabia's east-west pipeline due to attacks by Iranian-backed militias in Iraq, which may reduce global oil supplies by up to 3.6 million barrels per day, equivalent to 3.6% of global demand, according to analysis by Kpler.
The Red Sea route, another vital energy pathway, is reportedly facing renewed threats from Yemen's Houthi militia. These developments are occurring as the northern hemisphere approaches winter.