Households face further spike in living costs as Ukraine war threatens to send oil to record highs

Oil disruption signals a renewed cost of living squeeze on Europe, as Ben Chapman explains

The sharp price rises come despite western governments making exemptions for oil and gas from sanctions against Russia (PA)

Households face further big rises in fuel prices, energy bills and other living costs, with predictions that oil could spike to its highest-ever level this year in the wake of Vladimir Putin’s invasion of Ukraine.

Despite western governments’ desperate efforts to keep Russian oil and gas flowing into Europe, imports have faced major disruption as buyers refuse to take delivery, fearing it poses too high a risk.

Brent crude jumped to an eight-year high of $111 (£83) on Wednesday and analysts warned that $150 (£112) was a realistic prospect this year – a level that implies major economic harm to Europe as people cut back on journeys and goods become more expensive to manufacture and ship.