UK motorists are facing another surge at the pumps after the collapse of peace talks to end the US-Israel war with Iran sent oil prices climbing again. The conflict, which began on 28 February, had already caused wild swings in fuel costs – spiking as fighting disrupted Middle East energy supplies, then plunging when a framework deal was agreed in June, and now rising once more as tensions resurface.
According to the latest figures from the RAC, petrol now costs 152.54p a litre and diesel 167p, up from July lows of 150.50p and 164.52p respectively. The increases follow a jump in the price of Brent crude, the global oil benchmark, which has climbed from near $70 a barrel in early July after the deal to around $87 a barrel today. Analysts say every $10 (£7.53) rise in oil adds roughly 7p to a litre of fuel.
“Petrol and diesel costs climb as Brent crude jumps after breakdown of US-Israel-Iran peace negotiations.”
“The increases are likely to keep coming thick and fast,” warned Simon Williams, head of policy at the RAC, pointing to the recent Brent crude surge. The volatility has been extreme: before the conflict, Brent traded at about $70 a barrel; it peaked above $120 during the war, then fell back to near $70 after the framework deal, before rising again.
Despite the latest uptick, prices remain well below the record highs of summer 2022, when petrol hit 191.5p and diesel 199p following Russia’s invasion of Ukraine. During the Iran war, petrol reached an all-time conflict peak of 159.53p on 28 May, while diesel hit 191.54p on 15 April. The RAC’s data show that after the deal, petrol sank to 150.50p and diesel to 164.52p in early July.
The AA’s head of policy, Luke Bosdet, said his group had been “surprised at the speed” of the recent price falls, attributing it to a government scheme, Fuel Finder, which lets drivers compare pump prices across the country. Fuel retailers have denied accusations of price gouging, and the official markets regulator said it had “not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis.”
Because transporting oil is slow, wholesale price movements take about a fortnight to reach the forecourt. That means the latest Brent spike will feed through in the coming weeks. The government has already acted: on 20 May, Prime Minister Sir Keir Starmer postponed a planned 5p rise in fuel duty, due in September, until 31 December because of the conflict. With peace talks in tatters, drivers can expect little respite at the pumps.
