Oil prices surge again as Brent hits five-month high
Fuel prices are rising fast in the global market because of the ongoing political conflict in the Middle East and serious breaks in supply chains. According to a CNBC report on Tuesday (20 October), world oil prices jumped sharply in one go.
Benchmark Brent crude oil has reached 111 dollars per barrel, the highest in the last five months. The US benchmark WTI (West Texas Intermediate) crude oil has also risen to nearly 110 dollars per barrel.
Market analysts say fear has spread among investors as commercial ships keep coming under attack on key sea routes in the Middle East, including the Strait of Hormuz. At least 18 commercial ships have been attacked in the last few weeks. This has raised big worries about the safety of global energy supply.
Experts warn that if the situation does not calm down soon, production and transport costs may rise around the world. It may also add new pressure of inflation. Economists fear this could hurt the global economy.
