Oil prices have skyrocketed following the recent Hamas attack in Israel, raising concerns about increased tensions in the Middle East and potential shortages. Brent crude, which is the international standard for oil prices, jumped by 5.2% before steadying at 3.8% higher at $88 per barrel.
Possible consequences for motorists
The surge in oil prices spells bad news for drivers as petrol and diesel prices at the pump typically take two weeks to reflect higher wholesale costs. This sudden increase in prices is an unexpected blow for motorists, who had been experiencing a steady decline in oil prices throughout September.
Threat to oil supplies
While Israel is not a major oil producer, experts warn that the ongoing conflict in Gaza could disrupt oil supplies. This resurging conflict has contributed to the rebound in crude oil prices, reversing some of the significant declines witnessed last week.
Impact on airlines
In addition to the oil market, the airlines sector has also been significantly affected. With carriers like Ryanair, Lufthansa, Wizz Air, Virgin Atlantic, British Airways, and Air France suspending flights to Tel Aviv, airline shares sank yesterday. This disruption is a direct result of the increased tensions and security concerns in the region.
Travel advisory
In light of the escalating situation, the Foreign Office has advised against all but essential travel to Israel and the occupied Palestinian territories. This advisory reflects the growing concerns about the safety and stability of travel in the region.
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