Oil prices exceeded $100, conflicts in the Middle East are influential

Conflicts in the Middle East have led to a significant increase in oil and gas prices. Recently, the escalation of conflicts between the US and Iran has pushed oil prices above $100, increasing the price of Brent crude oil by more than 3% to reach $101.

While US military officials announced the destruction of several Iranian tankers, Iran attempted to target a US warship with ballistic missiles. This situation further heightened tensions in the region. Additionally, Iranian-backed Houthi forces targeted four cities in Saudi Arabia, resulting in over 70 injuries and damage to oil facilities.

Following these developments, energy prices in Europe also began to rise. In the Netherlands, gas prices reached €78.73 per megawatt hour, the highest level of 2023, while gas prices in the UK also increased. Andrew Bailey, the head of the Bank of England, stated that the rise in oil prices is putting pressure on inflation and interest rates.

In the past six months, oil prices have been volatile due to Iran's closure of the Strait of Hormuz. Since the beginning of August, oil prices have risen by 25%. This situation has negatively affected drivers in the UK, causing pump prices to reach the highest level in four years. The price of gasoline per liter has been set at 166.2 pence.

Economists warn that rising energy prices could have a negative impact on inflation. In the US, the Federal Reserve is expected to implement at least one interest rate hike by the end of the year. While energy companies benefit from this situation, the likelihood of high oil prices continuing creates uncertainty in the markets.