Global Oil Prices Surge, Triggering Global Inflation Risk

Global oil prices surged to their highest in more than two years after the Qatari government warned that oil and gas production in the Gulf region could halt in the coming days if the conflict in the Middle East continues. Quoting the Financial Times, Saturday (7 March 2026), QatarEnergy’s Energy Minister and CEO Saad al-Kaabi said that the conflict in the Middle East, a region that is the centre of the world’s energy supply, risks destabilising the global economy. According to him, war in the region could ‘knock the global economy’. The rise has put world oil price per barrel back in focus because of its wide-ranging impact, from vehicle fuel costs to heating, food, and imported goods. Roughly, one barrel of oil is about 159 litres. With a price of USD 93 per barrel, the world oil price per litre is about 0.58 USD. Citing the BBC, the latest surge in world oil prices and gas prices rising sharply this week has raised concerns about inflation in major economies such as the UK and the United States (US). Meanwhile, inflation in these two countries had previously been on a downward trend. ‘If this war lasts several weeks, global GDP growth will be affected,’ said al-Kaabi. ‘All energy prices will rise. There will be shortages of some products and a chain reaction when factories cannot supply goods.’ The impact is already being felt in the UK. According to RAC data, petrol prices at petrol stations rose by about 3.7 pence per litre since last Saturday, while diesel prices rose 6 pence, reaching a 16-month high. Meanwhile, the UK’s competition watchdog, the Competition and Markets Authority, said it was monitoring developments in fuel prices at pumps. Several parties fear the crisis could trigger similar impacts to energy price spikes after Russia’s invasion of Ukraine in 2022.