NEW attacks on cargo ships in the Persian Gulf have sent oil prices surging towards $100 a barrel, sparking fears of rising fuel costs and household bills in Spain.
Iranian boats attacked two cargo ships, in Iraqi and UAE waters on Thursday, setting them ablaze and killing one crew member.
It follows three attacks on ships in the region on Wednesday.
The new strikes on ships connected to the US and Europe mark a further escalation in the Iran-US-Israel conflict, pushing the number of vessels attacked in the region since the fighting began to at least 16.
This further threatens shipping through the narrow Strait of Hormuz, a key route through which around 20 per cent of the world’s oil passes each year.
Following the attacks, oil prices briefly surged above $100 a barrel for the first time since Russia’s invasion of Ukraine in 2022, before settling back to around $96.
Iraq has expressed ‘deep concern’ over the escalating conflict in the region, urging all parties to keep maritime routes and energy infrastructure out of the fighting.
For Spain, the latest attack is another signal that global oil shocks could translate into higher bills and economic uncertainty at home.
On one hand, household bills have risen sharply since the outbreak of the war.
According to data from Trading Economics, between March 2 and March 10, the average wholesale energy price jumped from around €18/MWh (megawatt-hour) to €137/MWh.
That marks a rise of over 640 per cent in just over a week
Fuel prices have also skyrocketed – climbing to levels last seen in August 2024 for gasoline and October 2023 for diesel.
Gasoline in Spain now averages €1.60 per liter at the pump, with diesel at €1.645, according to Thursday’s EU Oil Bulletin.
Over the past week, gasoline prices have climbed 7.7 per cent, while diesel has surged more than 14 per cent.
In addition, Think?tank Funcas warns that if oil prices remain elevated, inflation in Spain could climb above 3?% by the summer, up from 2.3?% before the outbreak of the Iran conflict, adding fresh upward pressure on the cost of living.
With energy costs climbing, Spain faces mounting pressure on household budgets and the wider economy if oil prices stay high.
Despite President Donald Trump’s Kentucky rally declaration that the war is ‘won,’ the latest Middle East attacks signal rising tensions and continued pressure on the global economy.
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