Oil and gas prices have seen dramatic lifts as financial markets give their first reaction to the war in the Middle East.
Global stock markets were down across the board but some sectors, such as energy and defence, helped limit losses.
Brent crude oil rose by as much as 13% to $82 per barrel at the start of Asian trading. It later settled around the $79 mark.
That was despite confirmation from two major oil and gas-producing nations that output had been hit due to aerial attacks by Iran on their state-owned infrastructure.
Markets latest: Key developments as war grips Middle East
The world’s largest oil refinery in Saudi Arabia was shut down after it sustained damage.
Contracts for day-ahead natural gas delivery to the UK were up more than 30% early on Monday afternoon while those for April delivery spiked by more than 50%.
The rises were attributed to news that Qatar’s state-owned energy firm had suspended production of all liquified natural gas (LNG).
The country accounts for about 20% of global LNG supply, which is delivered by ship.
It means we face the prospect of bigger bills ahead, if the higher wholesale prices were to be sustained for an extended period of weeks.
It’s worth remembering however that no hikes to household bills could come until the beginning of July, for those on the price cap. That is because the cap level for April to June has already been set.
It would take many weeks of elevated prices to hurt the outlook for bills.
When it comes to oil, the RAC said average unleaded petrol costs, already tipped to rise by 1p a litre this week due to earlier…
