Global oil prices exceed $100 amid fears of second energy shock

Global energy markets are facing renewed instability as crude oil prices exceed $100 per barrel, driving inflationary pressures across the US, EU, and UK. Experts, including Joe Brusuelas of RSM US, have suggested the world has entered “oil shock 2.0”.

The situation follows the collapse of a June agreement between the US and Iran intended to extend a truce and reopen the Strait of Hormuz. This collapse, combined with the ongoing Russia-Ukraine war, has heightened concerns regarding tight oil and gas supplies for the upcoming autumn and winter seasons.

In response to rising costs, fuel price protests have emerged in countries such as Syria and Guatemala, while India and the Philippines have implemented emergency energy-saving measures. In the UK, Scottish Labour leader Michael Marra has urged Andy Burnham to approve the Rosebank and Jackdaw oil and gas developments and accelerate the replacement of the Energy Profits Levy (EPL).