The oil price has climbed above 80 dollars per barrel for the first time in three-and-a-half years amid simmering global tensions over Iran.
Brent crude has been rising in recent months as supplies tighten and the decision by Donald Trump to pull out of an international nuclear deal with Tehran has added to the upward pressure.
The rising price of oil will add to the pressure on motorists’ fuel bills. But is a welcome trend for oil companies including BP and Royal Dutch Shell, two companies which are staples of UK pension funds.
Markets have been reacting to the prospect of a sharp drop in Iranian oil exports after the US decision on the deal.