Oil Prices Soar as Middle East Conflict Intensifies

0:00On March 13th, the ongoing Middle East conflict has triggered the biggest oil supply shock ever, according to the International Energy Agency. Surpassing even the 1970s embargo, Brink crude prices have jumped to nearly $120 a barrel since fighting started less than two weeks ago. Tanker attacks in the Gulf, including two vessels set on fire near Iraq's Boss Report, have heightened tensions. Flows through the Strait of Hormuz have dropped from 20 million barrels a day to almost nothing, as Iran threatens to keep it shut. In the UK, petrol costs have risen seven pints per liter to over 140 pints, while diesel is up 16 pints to 158 pints. Nearly all households face deeper food bills, and borrowing costs have hit a six-month high amid inflation worries. Goldman Sachs now warns prices could reach $150 a barrel, if disruptions drag on, flashing UK growth forecasts and pushing. Inflation toward 3.5 percent, the chancellor says targeted aid for families is in the works.

1:04The IEA released 400 million barrels from member stockpiles, but traders call it just a short-term fix covering about two weeks. With no end to Iran's resistance despite heavy strikes, oil nations are cutting output as storage fills up fast.