Oil Prices Surge as Middle East Tensions Escalate

0:00On March 11, oil prices are surging due to escalating tensions in the Middle East, where U.S. forces have targeted Iranian vessels near the strait of. Hormuz, a vital route for about one-fifth of global oil supplies. UK petrol prices have jumped 3.5 pence per liter in the past week to 135.67 pence while diesel is up. Nearly 7 pence to 149 pence. The Trump administration warned Iran of unprecedented strikes, if it mines the strait, leading to attacks on 16 Iranian ships and a cargo vessel. Hit by a projectile. Shipping through the areas now severely disrupted, with Iran threatening to block all oil exports from the region. Chancellor Rachel Reeves defended plans to raise fuel duty in September, noting current pump prices are lower than under the prior government despite, volatility. Under cabinet ally Darren Jones urged keeping the freeze in place, saying the government can help drivers as budgets approach later this year.

1:01Inflation forecasts have worsened, with the office for budget responsibility now expecting 3% through year end, up a full point from last week. Bank of England rate cuts look unlikely soon, hitting mortgage holders hard. Saudi Aramco's boss warns of catastrophic oil market fallout if disruptions persist, as they're dipping into stockpiles to meet demand. Those say they're monitoring closely amid this fluid crisis.