Markets are braced for a surge in oil prices today after Iranian reprisals forced the near-closure of a vital shipping route.

Motorists in the UK were warned of potential ‘record prices at the pumps’ while economists predicted that fragile economies could be pushed ‘closer to recession in a matter of weeks’.

Ships and ports in the Persian Gulf have been targeted by Iran‘s Revolutionary Guard after the death of leader Ayatollah Ali Khamenei on Saturday.

Leading shipping companies suspended sailing through the Strait of Hormuz after two ships were hit yesterday morning, one of which was set on fire, injuring four mariners. The crew of one vessel, Skylight, were later evacuated.

A third strike happened 35 miles off the coast of the United Arab Emirates yesterday afternoon when, according to the United Kingdom Maritime Trade Operations (UKMTO), ‘an unknown projectile exploded in very close proximity to a vessel’. It added that all crew were safe and well.

The threat of further Iranian attacks yesterday saw at least 150 tankers drop anchor as companies, including European giants Maersk and CMA CGM, refused to head into the 100-mile Strait – which is just 24 miles wide at its narrowest point – where the Persian Gulf flows into the Arabian Sea.

Some 20 per cent of the world’s oil – about 20 million barrels per day – and 25 per cent of liquefied natural gas is transported through the passage, which Iran briefly closed off by holding live fire drills last month.

OPEC (the Organisation of Petroleum Exporting Countries) stood accused of cashing in on the crisis in the Middle East as prices have already climbed 20 per cent this year as markets anticipated the attack on Iran.

Insurers are reportedly declining to cover ships passing through the Strait, where UKMTO said it is aware of ‘significant military activity’. The US said it could not guarantee ships’ safety and experts predict the disruption could last for days.

Edmund King, president of the AA, warned the impact on fuel prices could be worse than when Russia invaded Ukraine in 2022, when petrol surged as high as 191p per litre. It is currently priced at around 133p.

Ali Vaez, director of the Iran Project, said yesterday: ‘Closure of the Strait of Hormuz would disrupt roughly a fifth of globally traded oil overnight – and prices wouldn’t just spike, they would gap violently upward on fear alone. The shock would reverberate far beyond energy markets, tightening financial conditions, fuelling inflation and pushing fragile economies closer to recession in a matter of weeks.’

The price of Brent crude oil had already risen to $73 (£54) on Friday, its highest level since last July, and surged 13 per cent following the Middle East turmoil.

The volatility could also lead to higher electricity prices, according to one expert. Jorge Leon, head of geopolitical analysis at energy intelligence firm Rystad Energy, said disruptions in the liquid natural gas markets could drive up gas prices, which are closely linked to the price of electricity.

He said: ‘A higher electricity price will feed through the global economy, and, in particular in the UK, [lead to] higher inflation.

‘We have a direct effect – which is higher prices at the pump and higher electricity bills, but also a secondary effect, which is things will get more expensive because inflation might increase.’

Iran’s Revolutionary Guards claimed they had ‘hit three US and UK oil tankers with missiles’ in the Persian Gulf and the Strait of Hormuz. Shipping firm Maersk has also suspended use of the Suez Canal and is diverting all ships around the Cape of Good Hope in South Africa.