UK Petrol Prices Hit Highest Level Since Iran War Began

Motorists across the United Kingdom are facing renewed financial pressure at the pump as fuel costs respond to ongoing geopolitical instability in the Middle East. According to figures published by the motoring group RAC, the average price of petrol reached 159.97p a litre, while diesel stands at 178.97p a litre. The increases mark the highest pump prices recorded since the conflict in the Middle East began on 28 February 2026.

How Middle East Conflict and the Strait of Hormuz Closure Drive Wholesale Oil

The sharp upward movement in pump prices directly mirrors volatility in global wholesale markets. Crude oil serves as the primary ingredient in both petrol and diesel, meaning that higher acquisition costs for refineries quickly translate to more expensive fill-ups for drivers. Market analysts note that every $10 (£7.44) per barrel increase in the price of crude oil pushes up pump prices by roughly 7p a litre.

Global wholesale prices have experienced dramatic swings since fighting broke out. Before the conflict began on 28 February, Brent crude—the international benchmark—traded at about $70 a barrel. As hostilities severely disrupted oil supplies across the region and effectively closed the Strait of Hormuz, prices surged to a peak above $120 a barrel. Approximately 20 per cent of the world’s oil and liquefied natural gas normally moves through this vital waterway.

Oil Prices Surge Toward $100 as Iran-U.S. Hostilities Threaten Strait of Hormuz

A temporary reprieve occurred in June when the United States and Iran agreed to a framework peace deal, driving Brent crude down to near the $70 mark by early July. During that brief downturn, average petrol prices sank to a low of 150.59p a litre, while diesel dropped to 164.52p a litre. However, the subsequent collapse of peace talks reversed those gains, sending Brent back above $100 before settling to trade at around $90 a barrel.

Divergent Trajectories for Petrol and Diesel at Forecourts

While petrol has notched its highest average since the outbreak of hostilities, diesel remains below its 15 April peak of 191.54p a litre, which was set during a period of sustained high costs earlier in the year. Even with the recent climb, current fuel costs remain below the record levels witnessed in the summer of 2022 following Russia’s invasion of Ukraine, when petrol hit 191.5p a litre and diesel reached 199p.

Because the physical transport and refining of crude oil is a gradual logistical process, wholesale market fluctuations typically take about a fortnight to appear at local forecourts. Looking ahead, industry experts warn that pump prices will likely climb further.

Simon Williams, head of policy at the RAC, stated that the price of diesel was likely to reach 185p a litre in the next few weeks, barring any major oil price reduction.

Retailer Scrutiny, Government Intervention, and Supply Realities

As prices climbed, fuel retailers faced public accusations of inflating margins to capitalize on the crisis. However, the official markets regulator has stated that it had not seen evidence of retailers actively changing their pricing strategies to take advantage of market turmoil.

To assist consumers in finding the best deals, the government introduced a comparison initiative known as Fuel Finder, which allows drivers to compare prices across forecourts nationwide. Luke Bosdet, head of policy at the AA, noted that the motoring organization had been surprised by the speed at which some prices had dropped earlier in the season, attributing part of that responsiveness to the transparency provided by the tool.

Trump Demands Oil Companies Lower Gasoline Prices Amid Surging Costs

Policy measures have also sought to ease the burden on motorists. On 20 May, then-Prime Minister Sir Keir Starmer announced that a planned 5p increase in fuel duty—originally scheduled for September—would be postponed until 31 December because of the ongoing conflict.

Meanwhile, the UK’s broader energy dependencies leave it vulnerable to global market shifts. The nation relies heavily on oil and gas imports sourced primarily from the US and Norway. Although domestic extraction occurs in the North Sea, the majority of that output is exported for refining elsewhere. Energy analysts caution that even if a diplomatic resolution reopens the Strait of Hormuz, normal shipping volumes will take time to restore, keeping global economic pressures in place for months to come.