Escalating Saudi-Houthi Conflict Drives Global Oil and Gas Price Spike
· Business · BBC News, Times of India
Global oil prices have surged to over $108 per barrel, a 50% increase since June 2026, as conflict between Yemen's Houthis and Saudi Arabia disrupts energy infrastructure. The crisis intensified after drone attacks forced the shutdown of Saudi Arabia's East-West pipeline, which had been serving as a critical export route to bypass the Strait of Hormuz. Commercial shipping through the Strait of Hormuz has already collapsed following Iranian attacks and a US blockade of Iranian ports. Consequently, petrol and diesel costs have risen rapidly in the UK and US, while wholesale natural gas prices in Europe have nearly doubled. Analysts warn that these supply constraints could trigger a broader inflationary shock, potentially leading to higher interest rates and increased household costs.
Why it matters
Rising energy costs directly threaten to increase inflation and household expenses globally, including higher mortgage rates and food prices for consumers.
Read the original report — BBC News
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