Oil Prices Hit Highest Since 2022; Bank of England Warns of Inflation Risks

Oil prices surged to their highest level since 2022 on April 30, 2026, following a report from Axios that US Central Command has prepared a plan for a wave of “short and powerful” strikes on Iran. The news directly triggered a sharp rally in crude markets.

Oil Price Surge

The dramatic rise in oil prices reflects deep market concerns about an escalation in Middle East tensions. US peace talks with Iran appear to have stalled, with the critical Strait of Hormuz waterway still effectively closed. The strait is a vital conduit for global oil transportation, and its closure poses a severe threat to global energy supply.

US gasoline prices have also climbed in response, sparking public discontent. Protesters have been seen holding signs reading “make driving affordable again,” expressing frustration over rising energy costs.

Bank of England Holds Rates

Meanwhile, the Bank of England voted to hold its benchmark interest rate at 3.75%. However, the central bank warned that if the Middle East conflict continues to escalate and pushes energy prices higher, inflation could follow, leaving open the possibility of future rate hikes.

In its statement, the Bank said it will continue to closely monitor the knock-on effects of the Middle East conflict on the UK economy, particularly its impact on energy prices and inflation expectations.

Global Market Impact

Rising oil prices and geopolitical tensions have triggered volatility across global markets. Investors are reassessing strategies in energy sectors and safe-haven assets. Analysts warn that if the Strait of Hormuz remains closed, oil prices could climb further, posing a threat to global economic recovery.

Source: BBC Business, Axios