Global gas prices hit highest level since Iran war began
Global gas prices have reached their highest level since the start of the war on Iran, raising concerns about higher energy bills for consumers.
The Full Story
A plain summary built from the channels that reported this story.
Global gas prices have surged to their highest level since the start of the war on Iran, raising fears of higher energy bills for consumers. Oil prices have also climbed, reaching $95 a barrel on the same day. The renewed fighting around the Strait of Hormuz is stoking concerns about further disruption to world energy markets, threatening to push up fuel prices just as the UK government received some positive news on inflation.
Gas prices doubled after the Iran-US conflict began at the end of February. They eased off as the conflict dragged on, particularly after a memorandum of understanding on a peace deal, but have been pushing higher since. They have now broken through the previous peak, setting a new high for the conflict period. The moves seen today are expected to feed into the next Ofgem price cap, due to come into effect on October 1st, pushing energy bills even higher.
The immediate cause of the price spike is the renewal of fighting between Iran and the United States, which has ended tentative signs of more ships being willing to run the Strait of Hormuz. Beyond that, Europe is now facing competition from Asia over liquefied natural gas (LNG). There are reports of LNG tankers heading eastwards in search of higher prices. At the same time, energy storage levels in Europe are looking thin, lower than they were this time last year, just as the continent should be filling up for winter.
Ironically, the latest UK inflation figures showed some relief. The inflation rate is now at 2.6%, the lowest it has been for slightly more than a year. Within that, food prices are rising by 1.7% and petrol is actually down. However, most economists remain convinced that higher energy prices will ultimately feed into higher inflation, and today's moves will intensify those pressures.
In a separate development, President Trump said the US would bomb and destroy one bridge or power plant every time Iran targets a ship in the Strait of Hormuz. This follows an 11th night of US strikes on Iran and retaliatory attacks on Bahrain, Kuwait, Jordan, and Saudi Arabia.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | Channel 4 |
|---|---|
| Global gas prices reached their highest level since the start of the Iran war. | |
| Oil prices reached $95 a barrel. | |
| UK inflation rate is 2.6%, the lowest in over a year. |
Channel Perspectives
What each channel focused on, with key quotes.
Channel 4 News focused on the direct impact of rising gas prices on UK consumers, linking the global price surge to the upcoming Ofgem price cap and higher energy bills. The report also highlighted the geopolitical tensions around the Strait of Hormuz and the competition for LNG from Asia. The tone was explanatory and concerned, using an economics reporter to break down the market dynamics and the irony of the inflation figures.
- “global gas prices have hit their highest level since the war on Iran started”
- “the moves we've seen today are going to feed into that and push energy prices energy bills even higher”
- “energy storage levels in Europe right now looking pretty thin. I mean they're actually lower now than they were this time last year”
Broadcast Timeline
News broadcasts tracked for this story, in time order.