Gas and oil prices soar and shares tumble as crucial shipping lane threatened
BBC World
March 3, 2026
AI-Generated Deep Dive Summary
Gas and oil prices have surged, and global stock markets have dropped sharply following an Iranian official's threat to target ships passing through the critical Strait of Hormuz shipping lane. The UK's FTSE 100 fell by 2.6%, while France's CAC-40 and Germany's Dax saw drops of 3% and 3.7%, respectively, as investors grapple with the potential economic impact of rising energy costs and inflation.
The situation escalated after Iran's Islamic Revolutionary Guard Corps advisor, Ebrahim Jabbari, warned on state TV that ships entering the region would face a "serious response." The Strait of Hormuz is vital to global trade, accounting for about 20% of the world's oil and gas supplies. Recent attacks on vessels in the area have halted shipping traffic, leading to increased costs for transporting oil and gas. The price of hiring supertankers has surged to a record high of over $400,000 per day, nearly double last week's rate.
Higher energy prices are already affecting markets, with UK gas prices doubling since US and Israeli airstrikes began in Iran. While the UK has implemented a price cap until July, rising oil prices could still strain household budgets by increasing costs for fuel, transportation, and food. Experts warn that if crude oil prices reach $100 per barrel—a possibility if the shipping disruption continues—this could further drive up US petrol prices by up to 25 cents per gallon.
The conflict has also led
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Originally published on BBC World on 3/3/2026