Oil Prices Set for Record Monthly Gain Amid Iran War
Good morning and welcome back to the City AM liveblog. Oil prices are on track for their biggest monthly gain on record for March following the outbreak of war in Iran. This significant surge comes as the conflict continues to cause substantial ripples through global markets, with Brent crude – the international benchmark for oil prices – soaring over 51 per cent since the start of February.
Historical Context and Market Impact
This rate surpasses the 46 per cent increase recorded in September 1990 after Saddam Hussein invaded Kuwait, which triggered the first Gulf War. Despite the escalating tensions, markets have shown some resilience. The FTSE 100 rose over 1.6 per cent to 10,127.96, led by rallies of over two per cent in major energy companies Shell and BP.
Prime Minister Sir Keir Starmer is urging Britons to "act as normal" even as oil prices remain elevated. His spokesman emphasized on Monday that the UK possesses a "resilient and diverse" supply of energy sources, downplaying the immediate prospect of a fuel crisis. However, Brent crude edged up around one per cent and remained comfortably above the $110 mark, highlighting ongoing volatility.
Potential Supply Crisis Warnings
The situation is compounded by major warnings that attacks on energy infrastructure in Iran, Qatar, and Kuwait, along with the blocking of the Strait of Hormuz, could precipitate a severe global supply crisis. These developments pose significant risks to economic stability worldwide, as energy markets grapple with unprecedented disruptions.
We will continue to bring you the latest updates on this evolving story and more. Here are some of our top stories from yesterday:
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- Starmer urges Brits to 'act as normal' as fuel shortage fears grow
