On Tuesday, the price of oil touched its highest level in more than seven years, as traders worried that an attack on a Middle Eastern gasoline storage facility could disrupt supplies.
Three petroleum tankers were blown up in the United Arab Emirates after a suspected drone attack by Yemeni Houthi militants.
Three individuals were murdered in an incident near Abu Dhabi airport on Monday.
Airstrikes by a Saudi-led coalition hit the Yemeni capital of Sanaa, killing as many as 20 people.
The rising price of oil is assumed to be due in part to rising expectations of a quick global economic recovery following the coronavirus pandemic, which would increase demand for fossil fuel.
Fears of attacks on the oil-rich state, along with forecasts of a jump in demand, pushed prices to their highest level since October 2014.
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Affordability crunch
Furthermore, there are already concerns that rising oil prices may exacerbate the cost-of-living crunch.
“With the perceived threat to crude oil lessening, traders are targeting the $100 per barrel milestone for the first time since 2014. Omicron’s presentation on the global economy and supply constraints The black stuff is rising because of the disruption “Russ Mould, AJ Bell’s investment director agreed.
“A seven-year high in oil prices, combined with a continued, though below inflation, rise in UK earnings, has refocused attention on inflationary pressures and a cost-of-living issue,” he added.
Brent crude, the international benchmark for oil prices, increased by over 1% to $87.22 per barrel. The spike in price was much more pronounced in the United States, as West Texas Intermediate crude rose 1.3 percent to $84.89 per barrel.
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