UK Petrol Prices Hit Highest Level Since Iran War Began

The UK's petrol prices have hit their highest level since the Iran war began, with a price of 163p per litre. The average cost of petrol has reached more than 163p per litre, according to motoring group the RAC.

Analysts say every $10 (£7. 44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre.

The price of fuel tends to track the wholesale price of oil, which surged when the Iran conflict began on 28 February. The fighting has severely disrupted oil supplies across the Middle East.

Prices then nosedived when US and Iran agreed to a framework deal to end the conflict in June, but they have risen again since the collapse of peace talks.

The price of petrol and diesel is also heavily influenced by demand and refining capacity. The RAC's head of policy Simon Williams said that, with oil prices remaining elevated, drivers will almost certainly start paying noticeably more at the pumps in the coming weeks.

Despite the conflict, petrol and diesel prices remain below the levels reached in the summer of 2022 following Russia's invasion of Ukraine, when petrol reached 191. 5p a litre and diesel hit 199p.

The Middle East conflict sent global oil prices soaring as it effectively closed the Strait of Hormuz — one of the world's key water transport routes for oil, liquid natural gas and other essential commodities — limiting global supplies.

Analysts warn that the impact of the war will continue to affect the global economy for potentially months to come. The UK is heavily reliant on oil and gas imports, with the majority coming from the US and Norway.

The price of oil on the global market determines how much the UK pays for it. Although the UK does get some oil from the North Sea, most of that is exported for refining elsewhere.

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