UK petrol prices have climbed to their highest level since the Iran war began, and a full tank of diesel now costs £100 again. The rises track Brent crude's climb back toward $80 a barrel after the collapse of US-Iran peace talks over the Strait of Hormuz.
UK petrol prices have risen to 161.5p a litre, the highest level since the Iran war began on 28 February, according to motoring group the RAC. Diesel now costs 181.5p a litre, which pushes the cost of filling a 55-litre family car to £100, while a full tank of petrol comes to £89.
Oil swung from $70 to above $120 and back
Before the war began, Brent crude — the global oil benchmark — traded around $70 a barrel, but the fighting pushed it to more than $120 at its peak. Prices fell back to near $70 in early July after the US and Iran signed a framework deal, then climbed back above $100 once those talks collapsed, before easing to about $80 now.
Pump prices lag the wholesale market
Analysts say every $10 rise in the oil price adds roughly 7p a litre at the pump, though the increase takes about a fortnight to reach forecourts because oil transport is slow. The Guardian reports that Wednesday's petrol price is up 7% from its 6 July low. Diesel is up 10% from its 9 July low of 164.5p. The RAC's Simon Williams described the return to £100 fill-ups as "something drivers haven't had to endure since early June".
Strait of Hormuz still the main risk
About 20% of the world's oil and liquefied natural gas normally passes through the Strait of Hormuz, which the conflict has effectively closed to shipping. Even if a new deal reopens the waterway, experts warn it will take time for normal shipping levels to resume, and the war's impact could affect the global economy for potentially months to come. Williams said there is hope that pump prices could come back down if talks to reopen the strait succeed.
Despite the rises, both fuels remain below the levels reached in summer 2022 after Russia's invasion of Ukraine, when petrol reached 191.5p a litre and diesel hit 199p.
Sources: BBC News, The Guardian
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