Global oil prices climbed sharply this week after escalating conflict in the Middle East disrupted critical shipping routes and intensified fears over energy supplies.
The international benchmark Brent crude briefly surged to 119 dollars per barrel on Tuesday, approaching its highest level since the start of the conflict involving the United States, Israel, and Iran.
The latest spike followed US-Israeli air strikes launched on February 28, after which Iran effectively blocked access through the Strait of Hormuz, one of the world’s most strategically important maritime corridors for oil transportation.
The disruption has rapidly pushed up wholesale oil prices, leading to significant increases in gasoline, diesel, and aviation fuel costs across multiple regions.
Countries Respond to Rising Energy Costs
Governments around the world have begun introducing emergency measures to address the economic pressure caused by soaring energy prices.
Australia announced temporary free bus travel in several regions as authorities attempt to reduce household transportation expenses and lower fuel demand.
Meanwhile, Egypt ordered shops, restaurants, and cafés to close earlier in an effort to reduce national electricity consumption and manage rising energy costs linked to global oil market volatility.
The Brent crude benchmark represents contracts to purchase oil one month in advance and directly influences fuel prices worldwide because crude oil remains the primary ingredient used to produce gasoline and diesel.
Gasoline and Diesel Prices Reach Multi-Year Highs
In the United States, gasoline prices surpassed 4 dollars per gallon for the first time in nearly four years, according to data from the AAA motor association.In the United Kingdom, petrol prices climbed to 152.8 pence per litre, marking the highest level seen in two years and roughly 20 pence higher than prices recorded before the conflict escalated.
Diesel prices rose even more sharply, reaching an average of 182.77 pence per litre, their highest point since December 2022.
RAC head of policy Simon Williams stated that gasoline prices could stabilize if oil markets stop climbing further, although diesel prices may continue increasing due to tighter supply conditions.
At the same time, average household energy bills in the UK are projected to rise by approximately 288 pounds annually beginning in July for a standard dual-fuel home.
Jet Fuel Supply Concerns Affect Airlines
Airlines are also facing growing pressure as jet fuel prices continue rising amid disruptions to fuel shipments from the Middle East.
According to energy analytics firm Vortexa, the final shipment of jet fuel currently traveling from the Middle East to the United Kingdom is expected to arrive later this week.
Market analyst Mick Strautmann noted that it is highly unusual to have no additional cargoes en route from the region, given that an average of eight shipments were typically in transit at any given time throughout 2025.
A spokesperson for the UK government said the country continues receiving jet fuel imports from India, the United States, the Netherlands, and several additional suppliers.
However, analysts warn that replacement supplies may not fully compensate for the reduced exports from the Middle East.
Strautmann explained that India is currently prioritizing exports to Southeast Asia because of shorter shipping distances and stronger regional pricing opportunities.
Additional shipments from West Africa, the United States, France, and the Netherlands have helped partially offset shortages, but overall supply volumes remain lower than normal.
Airlines Adjust Pricing Strategies
The surge in fuel prices is beginning to impact airline ticket costs and operational planning across Europe.Air France-KLM announced plans to increase long-haul ticket prices to absorb higher fuel expenses, while Scandinavian airline SAS confirmed fare increases and plans to cut approximately 1,000 flights in April.
British Airways parent company IAG stated that it does not currently plan to raise prices because the company secured fuel contracts before the conflict escalated, helping shield it from immediate market volatility.
Low-cost carrier EasyJet also warned that ticket prices could increase later in the summer once existing fuel hedging agreements expire.
Despite the uncertainty, Airlines UK said domestic carriers are not currently experiencing direct disruptions to jet fuel availability and continue working with suppliers and government officials to monitor the evolving situation.
Global Markets Remain Highly Sensitive
Energy analysts caution that global markets remain highly vulnerable to additional geopolitical developments in the Middle East, particularly any further escalation involving the Strait of Hormuz.
Because nearly a fifth of the world’s oil supply typically passes through the strategic waterway, prolonged disruptions could continue fueling inflation, raising transportation costs, and increasing economic pressure on households and businesses worldwide.
