Home heating oil prices have risen by approximately £100 in three weeks, a surge attributed by analysts to the escalating conflict between the United States and Iran. The price increases are a direct consequence of heightened military strikes by the US against Iran and attacks by Houthi militias on oil tankers in the Red Sea, which threaten crucial shipping lanes.
Raymond Gormley, head of energy policy at CCNI, stated that Brent crude, the global oil price benchmark, saw a more than 6% increase on a single Thursday following several days of rises. This escalation followed attacks on oil tankers in the Red Sea, a route utilized by Saudi Arabia to circumvent the Strait of Hormuz. "With oil supply under pressure and increasing uncertainty, the cost of heating oil is likely to continue to remain high until peace negotiations resume," Gormley noted. Prices had previously reached a four-month low by the end of June, but began climbing again in July due to the renewed conflict.
In Northern Ireland, consumers have experienced price increases of about 42.86%, amounting to £152.82 for 300, 500, and 900-litre orders of home heating oil, since February 26. Gormley explained that prices saw a dramatic spike at the beginning of March, peaking on April 9, before trending downwards until late June. However, since early July, prices have been steadily increasing until mid-month, then stagnating.
The Consumer Council for Northern Ireland confirmed that the current price volatility is directly linked to the US-Iran conflict, impacting vital oil-producing and shipping routes. The disruption to these routes and the resulting uncertainty in oil supply are expected to keep prices elevated until diplomatic efforts between the US and Iran can be resumed.