Britain’s Energy Gamble: Prices are on the Rise
When the gaping rift between Israel and Iran pulls the world’s oil & gas prices up by a solid 10%, the bigwigs at the UK Treasury feel the itch to act. It’s not just a number—it’s a headline in your grocery bill.
Rachel Reeves: The Mother‑F*cking Energy Guardian
- “We’re not anywhere near that stage” – Reeves told the BBC that Britain isn’t about to abandon the “table” on energy measures yet, but tension can’t be ignored.
- In a Sky News interview, she pin‑pointed two immediate concerns: the sharp climb in oil and gas prices, and the potential disruption of trade routes across the Middle East.
Oil & Gas Prices: The 10% Shock
In just one week, the price of crude and natural gas have crept up by over ten percent. While the numbers still sit below what they were a few months back, the trend is enough to put a line between “peaceful trading” and “Economic crisis.”
Middle East Trade Routes: A Tight Spot
Yesterday’s Houthi attacks on shipping lanes in the Arabian Sea taught us well how fast the Red Sea can become a safety nightmare. With the Strait of Hormuz at the heart of the energy supply chain, any flare‑up in that region can ripple across the globe.
The Stakes: From Iran Threats to Global Energy
Iran’s threat to block the Strait of Hormuz is no idle fear. If they cut off that vital corridor, allies could see energy prices skyrocket fast enough to outpace inflation speculators.
JPMorgan’s Take
“Israel’s attack on Iran may push the region into a new conflict with uncertain consequences,” warned JPMorgan’s analyst Natasha Kaneva. The sector could buckle as a result of Israel’s offensive, especially if it extends beyond the initial strike.
In short, the potential impact on global energy markets could be monumental, and the UK Treasury is already braced for whatever comes next.
