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23rd June 2025
05:26pm BST
Brits have been warned that petrol prices are due to 'skyrocket' after Iran crisis.
If Iran blocks the key oil shipping route in order to retaliate against US strikes, analysts have predicted that oil prices may surge to more than $100 a barrel.
On Sunday, Iran’s parliament voted on Sunday to close the Strait of Hormuz. The route carries about a fifth of global oil supplies; however, the decision is not final and must be approved by Iran's Supreme National Security Council.
Analysts have labelled the move 'worst-case scenario.'
Some experts have warned that the closure may result in prices hitting 100 US dollars (£74.43) a barrel.
Recent Israeli strikes on Iran's nuclear sites have already caused oil prices to rise, and following the recent US aerial bombing of three facilities in Iran, experts are concerned about the repercussions.
Speaking to The Times, Kallum Pickering, chief economist at Peel Hunt, warned that an Iranian attempt to attack or mine the strait would cause 'a significant global supply and price shock, depressing global GDP and pushing up inflation.'
The global benchmark oil price is currently the highest since January, having risen by about $10 a barrel to over $77, a response to fears that Iran could block the strait.
