Iran Conflict Pushes Oil Higher, Lifts Fuel and Food Costs Worldwide
Oil prices rose after the Iran conflict sent crude above $90 a barrel, lifting fuel and input costs. Family offices moved into oil assets after private equity pulled back under ESG pressure. Goldman Sachs warned crude could reach $115 by year end. Investors saw fast gains in oil-linked holdings as supply concerns tightened around the Strait of Hormuz.
UK pump prices climbed, with average petrol at about 158.03p per litre and diesel at about 191.11p per litre. Drivers were warned not to expect big falls soon. Fertiliser and red diesel costs rose sharply, with some farmers reporting fertiliser up 40% and red diesel up 100%. These input-cost shocks increase the risk of food inflation as farmers pass costs to buyers.
Key Takeaways
- Brent crude rose to about $97.94 a barrel amid concerns the ceasefire is fragile, and wholesale oil prices are roughly 35% higher since the conflict began.cnbc.commarketwatch.com
- Family offices increased direct investments in oil and gas, taking positions left by private equity and earning large gains from the recent rally.marketwatch.com
- UK pump prices climbed, with average petrol at about 158.03p per litre and diesel at about 191.11p per litre, leaving drivers warned not to expect big falls soon.cnbc.com
- Fertiliser and red diesel costs rose sharply, with some farmers reporting fertiliser up 40% and red diesel up 100%, pushing farm running costs higher and increasing the risk of food inflation.bbc.com+1
Affected Companies
Sources
Oil prices rise as concerns about ‘fragile’ cease-fire see Goldman warn of $115 crude by end of the year
MarketWatch
“According to this source, traders remain wary about restricted traffic through the Strait of Hormuz and Goldman Sachs warned crude could reach $115 by year end.”
Family offices piled into oil after capital dried up. The recent rally has made for big gains
CNBC Markets
“Reported that family offices increased direct investments in oil and gas after private equity and institutional investors pulled back under ESG pressure, and that the oil rally produced large gains.”
Petrol and diesel prices rise again as concerns grow over ceasefire
BBC Business
“According to this source, petrol and diesel pump prices rose again and drivers were warned not to expect a large fall in forecourt prices soon, while Brent crude traded near $98 a barrel.”