Oil has risen to $105 a barrel as concerns over the Middle East intensified and financial pressures spread across energy and borrowing markets.
The increase came amid signs that the war involving Iran is unlikely to be resolved quickly. The movement in oil prices was accompanied by higher gas costs and a rise in borrowing costs, underlining wider market unease linked to the worsening regional outlook.
The surge in energy prices is significant because oil and gas are key costs for households, businesses and governments. Higher borrowing costs can also add pressure across the economy by making debt more expensive for borrowers.
The latest known position is that oil, gas and borrowing costs have all moved higher as fears over the Middle East have escalated. No further details were provided on the immediate outlook for prices or on any official response.
