Oil prices jumped by 4% after the US and UK launched strikes on Yemen over recent attacks by Houthi rebels on ships in the Red Sea. This is reported by the BBC, UNN reports.
Details
On Friday, the price of Brent Crude, the international benchmark for oil prices for most of the world, reached $80.71 per barrel before dropping, while West Texas crude rose 2.79% to $74.03.
Thus, for the first time this year, Brent crude oil reached $80 per barrel, as Iranian-backed rebels vowed to respond to the military actions of Western powers.
According to the BBC, the Treasury has modeled outcomes that include crude oil prices rising by more than $10 per barrel and natural gas prices rising by 25%.
Although the price has risen, it is below the highs reached during Russia's invasion of Ukraine. But the UK government has developed scenarios that suggest further disruptions could hit the economy.
Consequences
Rising energy prices could accelerate inflation, which has already begun to slow. Meanwhile, the cost of transporting containers by ship has jumped, meaning that companies can pass these costs on to consumers.