Energy Prices

Energy prices increased 4.7% month on month in August, following July’s 0.7% fall.

Energy prices rose in August as the two-month Iran-U.S. truce expired and Houthi attacks in the Red Sea hit an alternative export route, reviving investors’ fears of deeper supply disruptions. Brent and WTI moved back toward the four-year highs seen in March–May, though they stayed below those peaks; Hormuz Strait traffic recovered to roughly half of prewar levels as Gulf states found workarounds. Diesel and gasoline stayed elevated—diesel crack spreads hit a record—as refining was hit by strikes on Russian plants. European natural gas soared to its highest since 2022 on low stockpiles, Qatari cancellations and Asian competition, while coking and thermal coal firmed as Chinese mine inspections curbed supply. U.S. natural gas bucked the trend, easing on record output before recovering late.