Oil prices have soared 40% within the past week and are now trading at over $100 a barrel, one of the largest weekly rises on record. And if the Strait of Hormuz remains closed, analysts warn $120 is likely and $200 a barrel quite feasible. Qatar’s energy minister is warning the conflict could bring down …
A look into the effect of higher oil prices on economies, firms and consumers. Readers Question: With oil prices rising towards $100, what are the economic effects of rising oil prices? In the short term, higher oil prices will lead to higher costs of production, increased inflation, lower economic growth and decreased living standards for …
Periods of high oil prices frequently lead to periods of recession shortly after. There are two main reasons for this. Higher oil prices reduce disposable income leading to lower spending. Higher oil prices push up inflation – sometimes causing Central Banks to increase interest rates. Oil prices and recession Periods of sharp rises in oil …
Gold is soaring in value. It has tripled in price since just five years ago. On 9 March 2025, gold prices hit a new record high of $5,095, with some analysts saying it could go up to $7,000 Why is gold so popular? Traditionally, Gold is seen as a hedge against inflation. The stock …
If you bought a house in London in the mid 1990s, by 2007 you could have earnt more from capital gains than you might doing a full-time job. But since the great financial crisis of 2007, adjusted for inflation, house prices have fallen 20%. Even in the past three years, high inflation has meant …
Definition: Economic inactivity means that people (aged 16-64) are not involved in the labour market – they are neither working or actively seeking employment. Economic inactivity includes students, early retirees, people looking after family members and the long-term sick. There are 9.0 million counted as economically inactive in the UK. (March 2026) The unemployed who …
Putting aside the very real human cost, war has also serious economic costs – damage to infrastructure, a decline in the working population, inflation, shortages, uncertainty, a rise in debt and disruption to normal economic activity. From some perspectives, war can appear to be beneficial in terms of creating demand, employment, innovation and profits for …
Since Saturday’s air strikes, oil and gas prices have shot up. It brings back bad memories of 2022 when oil caused a devastating bout of inflation. Traditionally, oil price surges have preceded recessions — 1974, 1979, 1990 and 2008, to name a few. Under one realistic scenario of prolonged disruption to the Straits of Hormuz, …