Why an escalating Saudi oil crisis could drive up prices everywhere

Global energy prices have spiked alarmingly again, driven largely in recent days by the escalating conflict between Yemen's Houthis and Saudi Arabia causing chaos for the oil industry. Petrol and diesel costs have risen rapidly in most countries while the wholesale price of natural gas - used for heating homes and generating electricity - has almost doubled in the UK and Europe since July. There are growing concerns of another inflationary shock on the world economy, which could cause interest rates to rise, increase mortgage costs and raise the price of almost everything in the shops including food. So what is behind this latest surge - and what are the implications for the world economy? The global oil price is currently above $108 (£80) per barrel, up from $70 (£52) in June 2026 - a roughly 50% increase.