North Sea oil prices have surged to a new record high, with the Forties Blend marker reaching nearly 147 US dollars (£109.50) a barrel on Thursday, surpassing the previous peak set during the 2008 financial crisis, according to data from LSEG. The rise comes as traders scramble to secure physical shipments of oil in Europe, driven by escalating tensions in the Middle East.
US President Donald Trump accused Iran of violating a ceasefire agreement by continuing to block the Strait of Hormuz, a crucial trade artery. In posts on Truth Social, Trump claimed Iran was charging fees to tankers and failing to allow oil through the strait, stating, 'That is not the agreement we have!' The ceasefire, announced earlier this week, had been conditional on the reopening of the strait.
Brent crude oil ticked higher amid the uncertainty, rising 1.9% to 97.79 dollars a barrel on Friday morning, after dipping to around 90 dollars on Wednesday following the ceasefire announcement. London's FTSE 100 edged up 0.17% to 10,621.05 points, while European indices also saw gains.
Richard Hunter, head of markets at Interactive Investor, noted that despite the oil price increase, oil majors slipped, weighing on the FTSE 100. He added that housebuilders enjoyed a positive week due to reduced likelihood of monetary tightening, and retailers also saw modest gains after a challenging period.
