Global energy prices have risen sharply as the expanding Middle East conflict disrupts oil and gas supplies. Oil is above $108 (£80) a barrel, up from $70 (£52) in June 2026, while UK petrol prices have exceeded 170p a litre and natural-gas costs have nearly doubled since July. Ofgem (UK energy regulator) is forecast to raise the domestic price cap by 25% in January next year, adding about £440 annually for a typical household. In the United States, petrol has risen to $4.32 (£3.20) a gallon and diesel has exceeded $6 (£4.46). Analysts point to reduced flows through the Strait of Hormuz, attacks on Saudi energy infrastructure and risks around the Bab al-Mandab Strait and Suez Canal. The IMF (global financial institution) estimates that a sustained 10% oil-price increase raises global inflation by 0.4% and cuts global GDP growth by up to 0.2%; the Bank of England estimates a 0.5% increase in UK inflation and a 0.4% reduction in UK GDP growth. The source says prices could fall if the United States and Iran reach a peace agreement, as they did temporarily after a preliminary deal in June.