Brent Oil Hits $83 as EU & UK Gas Prices Double on Iran Strikes

Brent crude oil prices surged toward about $82-$83 per barrel this week as U.S.‑Israeli strikes on Iran and retaliatory attacks raised fears of a broader Middle East conflict and significant disruption to global energy supply routes, including the Strait of Hormuz, a chokepoint through which roughly a fifth of the world’s oil and much LNG passes.

The threat of sustained disruption to shipping through the strait has lifted risk premiums in oil markets and helped push Brent to levels not seen since early 2025. Analysts warn that if tension widens or shipping remains constrained, prices could stay elevated or go even higher.

Gas Prices Spike Across Europe and UK

Natural gas markets have reacted even more dramatically. Benchmark wholesale natural gas prices in Europe have climbed toward around €60 per megawatt‑hour, roughly doubling recent averages before the latest Middle East escalation, while UK gas prices are approaching about 150 pence per therm amid the supply shock.

The jump in gas prices reflects fears that liquefied natural gas (LNG) flows, especially from key producers in the Gulf could be constrained if the conflict continues to affect shipping and export facilities. Traders are also dealing with stronger competition for cargoes and tighter overall supply sentiment, driving volatility in European and UK hubs.

What It Means for Consumers and Markets

The combined rally in oil and gas prices is reverberating through financial markets and consumer expectations. European stock indices have shown heightened volatility amid concerns that rising energy costs could dampen economic growth and rekindle inflation pressures. Gold and defensive assets have climbed as investors seek safe havens in light of geopolitical uncertainty.

For households, higher wholesale gas prices in the EU and UK are likely to translate over time into steeper energy bills, adding fresh cost‑of‑living pressure. In the UK, where gas forms a core part of heating and electricity generation costs, analysts warn that persistently elevated prices could push retail bills upward, echoing the pain seen during earlier gas market shocks. (Market context aligned with current trends.)

Even if the conflict de‑escalates, markets warn that the pricing effects could linger as precautionary premiums remain embedded and supply lines take time to return to normal.