British holidaymakers are cancelling or postponing trips to popular destinations in the eastern Mediterranean due to escalating tensions in the Middle East. On the Beach, a leading UK travel firm, has reported a “significant” drop in demand for holidays to Turkey, Greece, Cyprus, and Egypt. The company has suspended its full-year profit guidance, citing uncertainty over the conflict’s duration and the recovery of bookings.
The crisis has also pushed up jet fuel prices, threatening to increase the cost of summer getaways. This comes as many families would normally be booking Easter breaks. On the Beach CEO Shaun Morton said staff have been working around the clock to support affected customers and facilitate their return home.
Oil prices remain elevated, hovering around $100 a barrel after attacks on tankers in Iraqi waters. Two vessels were set ablaze, killing one crew member, in what appeared to be Iranian strikes. Iran has warned that oil could reach $200 a barrel, while the International Energy Agency has recommended releasing 400 million barrels from reserves to counter the worst oil shock since the 1970s.
The Strait of Hormuz, a critical waterway for about a fifth of the world’s oil, remains effectively blockaded. An Iranian military spokesperson claimed the strait is under Iran’s control. The conflict has also impacted financial markets, with the average two-year fixed mortgage rate rising to 5.04% and the five-year rate to 5.13%.
