Oil prices soar after Israel attack — and it could hit cost at pumps in two weeks
OIL prices have soared after the Hamas attack on Israel — amid fears it could increase tensions across the Middle East and lead to shortages.
Brent crude, the international benchmark for oil prices, leapt 5.2 per cent yesterday before steadying 3.8 per cent higher at $88 per barrel.
That’s bad news for drivers, as petrol and diesel prices at the pump typically take two weeks to reflect higher wholesale costs.
The sharp rise is a late sting in the tail for motorists.
Oil prices had been falling steadily during September as investors reckoned higher interest rates around the world would start to reduce global demand.
Israel is not an oil producer, but the resurgent Gaza conflict threatens disruption to supplies, experts have warned.
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Michael Hewson, chief market analyst at CMC Markets, said: “The raising of the geopolitical temperature in the Middle East has seen a strong rebound in crude oil prices, which has seen some of last week’s big falls get reversed.”
Meanwhile airline shares sank yesterday as carriers cancelled and rescheduled their flights to Israel.
Ryanair, Lufthansa, Wizz Air, Virgin Atlantic, British Airways and Air France all suspended flights to Tel Aviv yesterday.
The Foreign Office has advised against all but essential travel to Israel and the occupied Palestinian territories.