UK Fuel Prices Surge Towards £100 Mark Amid Escalating Iran Conflict

The cost of filling a family car with diesel in the UK is approaching £100, with petrol prices also soaring due to escalating conflict in the Middle East. The RAC reports that average prices for both fuels have risen significantly in recent weeks, impacting millions of families embarking on summer getaways.

Diesel prices have increased by approximately 9 pence per litre, adding nearly £5 to the cost of a full tank for an average family car over the past two weeks. Petrol prices have seen a rise of about 6 pence per litre, or around £3 per fill-up. Consequently, the average cost to fill a family car with diesel now stands at approximately £95, and £86 for petrol.

Separate figures from the AA suggest that these rising fuel costs will collectively add millions of pounds to the bills of an estimated 20.7 million drivers expected to take to the roads in the coming week. This surge comes as the conflict in the Middle East intensifies after a fragile ceasefire broke down earlier this month.

Oil prices have reacted sharply to the renewed tensions, with Brent Crude spiking back over $100 a barrel for the first time in two months. The conflict has been exacerbated by increased rhetoric between Donald Trump and Tehran, leading to further strikes. Notably, Iran-backed Houthi militants have targeted two Saudi oil tankers, raising concerns about global oil supplies.

The Strait of Hormuz, a critical chokepoint for oil and gas transportation, which typically carries about a fifth of the world's supply, faces potential disruption amid Iran's actions. This instability is pushing pump prices upward after a brief period of decline following a previous peace deal.

Simon Williams, a spokesperson for the RAC, noted that the price of unleaded petrol has risen by 5.6 pence per litre since July 6, reaching an average of 156.19 pence per litre. Diesel has seen a steeper increase of 8.6 pence per litre over the same period, averaging 173.15 pence per litre. Williams warned that without a de-escalation of hostilities, petrol prices could reach new highs not seen since the initial outbreak of the Iran war.

Luke Bosdet, fuel guru for the AA, described the situation as a "bitter blow" for holiday travellers, expressing little optimism for immediate relief. He also pointed out that parking costs at some coastal resorts are adding to the financial burden for visitors.

Average diesel prices previously peaked at 191.54 pence per litre in April, shortly after the US-Iran conflict began on February 28. At the start of that conflict, diesel was 142.38 pence per litre. Petrol prices reached a high of 159.53 pence per litre in May, compared to 132.83 pence at the conflict's outset. The current prices indicate that petrol is nearing its post-conflict high, while diesel has further to rise to reach its previous peak.

The Houthi rebels control territory in northern Yemen, including the Bab el-Mandeb strait, a vital maritime route connecting the Red Sea to the Indian Ocean. While the group has not officially blockaded the waterway, their threats to ships using Saudi ports have heightened concerns over the safety of this channel, which is used by approximately 7% of global maritime traffic, further jeopardizing oil supply routes.