US-Iran tension sends oil prices soaring

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Oil prices climbed above $70 a barrel for the first time in four months on Monday amid fears that the US airstrike that killed Iran’s top military commander may trigger a retaliation and disrupt global energy supplies.

The Brent crude price hit $70.73 (£53.74), its highest level since Houthi rebels launched a drone attack on a major Saudi oil facility in September, with European stock markets also posting losses, including a decline of 0.6% on the FTSE 100 in London. The S&P 500 and Dow Jones in New York were slightly up at closing.

About a fifth of the global oil supply flows through the Strait of Hormuz, a narrow shipping route between Oman and Iran. It was targeted last year by Iran, which seized two oil tankers in the strait.

A prolonged oil price surge could raise the risk of a global economic recession and would add about 2p a litre to the price of petrol at the pumps.

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