Oil surges above $100 after tankers attacked – Daily Business

Attacks were made oil facilities and tankers

Oil prices jumped above $100 a barrel after the release of record emergency reserves failed to ease tensions in the market over new missile attacks in the gulf.

The price of Brent dipped below $90 before rising again after three cargo vessels were hit in the Strait of Hormuz which carries about a fifth of the world’s oil and gas supplies each day. Earlier in the week oil soared above $117.

The International Energy Agency (IEA) release 400 million barrels of oil in an attempt keep the lid on prices and guarantee supplies.

Iran has warned against artificially lowering the price of oil and says it expects the price to hit $200.

UK Energy Secretary Ed Miliband, is working with international allies “to address the disruption in oil markets”. 

Chancellor Rachel Reeves is under increased pressure to reverse a planned increase in fuel duty due in September. She told the Commons that the “most important” thing ministers could do to keep fuel prices down was to help “de-escalate” the conflict.

Tory leader Kemi Badenoch yesterday asked Sir Keir Starmer how an increase in fuel duty was consistent with the Prime Minister’s pledge to tackle the cost of living.

He replied that fuel duty was frozen and would be reviewed in September.

Her forecasts on growth are also being challenged as expectations for higher inflation will almost certainly end the prospect of early cuts in interest rates.

Two-year gilts recorded rose to 4.01%, their highest level since September.

The FTSE 100 ended the day 58.47 points, 0.6%, lower at 10,353.77. On Wall Street, the S&P 500 dipped 0.1% and the Dow Jones industrial average was down 0.6 %. Tthe technology-focused Nasdaq Composite edged 0.1% higher.

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