Oil prices have surged to their highest level since 2022, driven largely by ongoing conflict in the Middle East. Brent crude oil rose above $126 per barrel during early trading before settling around $122 as European markets opened.
US Military Action Could Further Impact Prices
Reports indicate that the United States is preparing potential military action against Iran, which would directly affect oil prices once more. With one-fifth of global energy supplies passing through the Strait of Hormuz, any further disruptions could lead to soaring costs.
Summer Holidays at Risk
Beyond immediate price hikes, summer holidays abroad may also be impacted or even halted due to the conflict. Prime Minister Sir Keir Starmer has acknowledged that UK jet fuel levels are a concern. "We'll see how long the conflict goes on," he said. "I can see that, if there's more impact, people might change their habits… where they go on holiday this year, what they're buying in the supermarket, that sort of thing."
The Prime Minister's official spokesman stated that the government is engaging in "contingency planning" on flights, with fears surrounding potential holiday cancellations across June, July, and August. He said: "We are ramping up planning for all different potential impacts on the UK economy and consumers, and that means focusing on live monitoring of stock levels and what plans are in place for addressing supply chain disruption."
He added: "On holidays… I just want to reiterate that UK airlines are clear that they are not currently seeing a shortage of jet fuel. It's typically bought in advance with airports and their suppliers keeping stocks of bunkered fuel to support their resilience. And we continue to work with fuel suppliers, airlines and international counterparts on our contingency planning to ensure people keep moving and businesses are supported while the conflict is ongoing."
