---
title: "Energy prices and borrowing costs hit decades high amid Middle East conflict"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-09-11T05:47:06+00:00"
modified: "2026-09-11T05:47:06+00:00"
date: 2026-09-11
canonical: "https://stockmark.it/oil-gas-and-borrowing-costs-surge-as-fears-over-middle-east-escalate/"
category: "Energy"
categories: ["Energy", "Financial"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/energy-prices-and-borrowing-costs-hit-decades-high-amid.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Energy prices and borrowing costs hit decades high amid Middle East conflict

**Published:** September 11, 2026
**Author:** Stockmark.IT Website
**Categories:** Energy, Financial
**Featured image:** ![Energy prices and borrowing costs hit decades high amid Middle East conflict](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/energy-prices-and-borrowing-costs-hit-decades-high-amid.png?fit=1536%2C1024&quality=80&ssl=1)

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Oil prices have surged to 105 dollars a barrel as the conflict in the Middle East shows no signs of immediate resolution. This sharp increase has intensified fears that inflation may accelerate across global economies. The escalation between the United States and Iran in the Gulf region has driven up the cost of both crude oil and natural gas. Brent crude crossed the 100 dollar threshold on Wednesday and has continued to climb since then.

The ongoing war has resulted in the effective closure of the Strait of Hormuz. This blockade prevents oil and gas supplies from the Gulf from reaching international markets. Simultaneously, long-term borrowing costs in the United States and the United Kingdom have risen to their highest levels in decades. President Donald Trump stated at a Republican Party convention in Texas that he did not expect the fighting to conclude before the US mid-term elections in November.

Analysts indicate that the combination of rising energy expenses and higher borrowing rates is placing significant pressure on financial markets. Chris Beauchamp, chief market analyst at trading platform IG, noted that investors are increasingly worried about the economic consequences of elevated oil prices. He described a growing awareness of the oil market crisis among global investors and warned that sustained high energy prices could weigh heavily on the global economy.

Concerns have further deepened after reports emerged that Iran-aligned Houthi forces seized the port of Mokha in Yemen. This is a key Red Sea port, and the move has raised fears of additional shipping disruptions. Natural gas prices have also soared on wholesale markets. In the UK, prices rose above 200 pence per therm for the first time since the end of 2022. Storage levels in Europe are significantly lower than normal for this time of year, and the urgent need to fill reserves before winter has contributed to the price increase.

UK consumers are shielded from short-term wholesale spikes by the Ofgem price cap. However, if prices remain high for an extended period, households will still face steeper bills. The cap is scheduled to increase by 3.6 per cent at the start of October, with the next adjustment due in January. The rise in energy costs has fuelled fears of an inflation spike, which has pushed up yields on government bonds worldwide. In the UK, yields on 10-year bonds reached their highest level since 2007, while 20-year and 30-year bond yields hit levels not seen since 1998. This implies higher borrowing costs for the government at a time of fiscal pressure and could affect household finances, particularly fixed-rate mortgages.

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