Oil attacks trigger gas price spike and threat of rate rises

Britain is to “step up” defensive support for Gulf states after Iran attacked energy sites across the region in a “serious escalation” of the war that could push up inflation and interest rates.

- ALASTAIR JAMIESON ALEX CROFT

The price of Brent crude climbed as high as $119 a barrel and European gas prices briefly surged by 35 per cent after Iran pounded Qatar’s Ras Laffan energy hub and other Middle Eastern oil and gas infrastructure with missiles.

Interest rates were held at 3.75 per cent instead of the previously expected cut, as the Bank of England warned that the war could push inflation as high as 3.5 per cent by July on the back of rising energy bills, and that rates could rise - creating misery for homeowners.

It came as:

• US defence secretary Pete Hegseth said ’ungrateful’ European allies should be thanking Donald Trump for the war

• President Trump claimed he had been unaware of Israel’s intention to strike Iran’s South Pars gas field

• Oman called the US/Israel attacks a ’grave miscalculation’

• Europe’s biggest airlines warned of higher fares