Oil prices surge past $100 as US-Iran strikes and Houthi shipping attacks escalate
US and Iran trade strikes, Houthi rebels expand reach to Red Sea, pushing oil above $100 a barrel and driving up fuel costs worldwide.
The Full Story
A plain summary built from the channels that reported this story.
The conflict between the United States and Iran has entered a new and more dangerous phase, with oil prices surging past $100 a barrel for the first time in months. The latest escalation began when the US military said it had destroyed five Iranian oil tankers, prompting Iran's Revolutionary Guards to retaliate by attacking 10 vessels, including American warships, near the Strait of Hormuz. Iran also fired missiles towards a US base in Jordan, where air defences intercepted 18 of 20 missiles, with no casualties reported.
The tit-for-tat strikes have reignited fears about global oil supplies, pushing Brent crude above $108 a barrel at one point. The Strait of Hormuz, through which around 20% of the world's oil passes, has seen traffic slow to a trickle under a US naval blockade. Iran, unable to export its own oil, has threatened to stop other nations' shipments too. As one analyst put it, "if we cannot export our oil, so no one else should be able to either."
At the same time, Iran's allies, the Houthi rebels in Yemen, have opened a new front. They have captured the port of Mocha and advanced towards the Bab al-Mandab strait, the southern entrance to the Red Sea. This waterway has become a vital alternative route for Saudi oil after the Strait of Hormuz was choked off. The Houthis have also launched drone strikes on Saudi oil infrastructure, including a key pipeline used to bypass the Gulf. Saudi Arabia, which had been supporting US actions against Iran, now finds itself directly under attack.
The economic fallout is being felt far beyond the Middle East. In the UK, the average price of petrol and diesel has risen sharply, with the RAC reporting levels not seen since 2022. Pump prices have jumped by around 8 pence a litre in just a few days. For a typical family car, filling up now costs more than £90. The wholesale price of gas has also climbed to a four-year high, threatening higher energy bills this winter. Food inflation is expected to rise, with wheat and other staples becoming more expensive due to higher transport and fertiliser costs.
Governments are under pressure. In the US, diesel prices have exceeded $6 a gallon, a politically sensitive issue ahead of the midterm elections. President Trump, facing an uphill battle, has promised a $5,000 "Trump dividend" to every adult citizen if Republicans retain control of Congress. The proposal, estimated to cost $1.3 trillion, has drawn criticism from within his own party. Meanwhile, the Bank of England has warned of inflation risks, and the UK government's borrowing costs have hit their highest level since 1998, adding to the Chancellor's budget headaches.
The conflict has also unsettled global markets. Asian stock indices fell sharply, with Japan's Nikkei dropping more than 2%. At the BRICS summit in Delhi, leaders are struggling to present a united front, given that member states such as Iran and the UAE are on opposite sides. The UN special envoy for Yemen has warned of a "new and more dangerous phase" in the civil war, as the Houthis tighten their grip on the Red Sea coast.
There is no sign of a diplomatic breakthrough. Both Washington and Tehran appear locked in a battle of wills, with each side believing time is on its side. Yet the longer the conflict continues, the more the global economy pays the price. As one expert warned, "there's nothing left in the system."
On screen
Stills are sampled automatically at 60-second intervals. Where shown, the still is the nearest available frame from the relevant broadcast segment and is included to show what was on screen during that part of the broadcast. A still may not correspond to the exact second of a quoted phrase.
Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | BBC News | BBC One | Channel 4 | ITV | Sky News |
|---|---|---|---|---|---|
| The US destroyed five Iranian crude oil carriers in retaliation for a warship coming under fire. | · | ||||
| Iran's Revolutionary Guards said they attacked 10 vessels, including US ships, in the Strait of Hormuz. | · | · | |||
| Oil prices rose to $100 a barrel for the first time since July. | · | · | |||
| Oil prices surged to multi-month highs. | · | · | |||
| The average price of unleaded petrol rose by five pence per litre in a week. | · | · | |||
| The US destroyed five Iranian oil tankers, and Iran attacked 10 vessels in response. | · | · | |||
| A US naval blockade has prevented Iranian oil from leaving the Strait of Hormuz. | · | · | · | ||
| Iran launched missiles at US targets in Jordan; Jordan intercepted 18 of them with no injuries. | · | · | · | ||
| UK petrol and diesel prices rose, with costs reaching their highest levels since the start of the Ukraine war and typical fills costing £93 for petrol and £105 for diesel. | · | · | · | ||
| Wholesale UK gas prices reached a four-year high. | · | · | · | ||
| A drone strike on a Saudi oil pipeline has been blamed on Iranian-backed militias. | · | · | · | · | |
| Donald Trump said there would be further attacks on Iranian tankers. | · | · | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
Channel 4 focused heavily on the economic and financial implications for the UK, including the impact on government borrowing costs, bond markets, and inflation. They brought in an economics editor and interviewed former US diplomat Nicholas Burns to analyse the strategic stalemate. The tone was analytical, with a clear concern for domestic knock-on effects.
- “The UK is caught up, as ever, the worst of both worlds because we have a higher inflation economy.”
- “Oil went above $100 a barrel, heading back to the peaks we saw just after the war started.”
- “I think there's a stalemate in the Strait of Hormuz between Iran and the United States.”
Sky News gave extensive coverage to the cost-of-living impact, using its 'economic pressure tracker' to show rising petrol, gas, and heating oil prices. They also highlighted the Houthi advance towards the Bab al-Mandab strait and the strategic significance of controlling both choke points. The tone was urgent, warning of tougher times ahead.
- “It's going to be brutal, it's going to be brutal at a time when we're now in year four of the cost of living crisis.”
- “So if you're feeling bad financially now, worse could be to come as we approach winter.”
- “The Strait of Hormuz is still being choked off by Iran.”
BBC News provided balanced geopolitical analysis, featuring a BBC Persian correspondent to explain Iran's internal divisions and economic desperation. They also reported on Asian market falls, the BRICS summit, and the Houthi seizure of the port of Mocha, underlining the expansion of the conflict.
- “Iran's strategy is, if we cannot export our oil, so no one else should be able to either.”
- “Brent crude has been trading just above $108 a barrel, with supplies through the Strait of Hormuz slowing to a trickle, and Yemen's Houthis threatening tankers in the Red Sea.”
- “The Houthis in this shaded area here can now threaten almost any shipping passing Yemen's Red Sea coast.”
BBC One West concentrated on the direct impact for UK motorists and households, with detailed graphics on oil price trends and expert analysis from their business correspondent. They also covered the military escalation, including Trump's prediction of an end to the war after the midterms, but always linked it back to consumer prices.
- “The price of petrol and diesel in the UK has risen sharply over the past few days.”
- “We can expect further increases in the coming days.”
- “It's a battle of wills that after six months neither side has won.”
ITV1 focused on the practical impact at the petrol pumps, reporting RAC figures and surveying drivers. They used satellite images to show a drone strike on a Saudi oil pipeline, making the connection between distant events and UK prices. The tone was consumer-focused and concerned.
- “It is another example of how events thousands of miles away are hitting us in the pocket here at home.”
- “Everything is going up, so it doesn't really matter whether it's just petrol or the supermarket or whatever.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.