Stories

Tue, 03 Mar 2026

Tue, 03 Mar 2026 Gas and oil prices soar and shares tumble on fears conflict could escalate

Markets react as the conflict in the Middle East intensifies and concerns grow over how long it will last.

* UK gas price surged to its highest level in three years, while Brent crude oil benchmark rose above $85 a barrel
* Global stock markets plummeted, with FTSE 100 down 2.75%, S&P 500 down 0.9%, and Nikkei falling 3.3%
* German Chancellor Friedrich Merz voiced concerns about economic damage from the conflict
* UK gas prices have doubled since US and Israel began air strikes on Iran on Saturday
* Higher gas prices could put pressure on household energy bills, but impact may not be seen in UK until July due to price cap
* Rising oil prices can affect economy by making transport, food, and other goods more expensive
* Conflict has halted shipping through the Strait of Hormuz, with 20% of world's oil and gas passing through waterway
* Insurance companies are no longer willing to insure risk of ships passing through the region, leading to higher costs for transportation
* UK households may see higher fuel prices if cost of oil remains high