Despite a brief reprieve after the US and Iran’s Memorandum of Understanding was signed in June, the reclosure of a critical oil supply trade route has rocked markets this month
UK drivers have been warned of a sharp rise in the cost of fuel after oil prices spiked amid ongoing tensions in the Middle East.
The UK’s RAC head of policy, Simon Williams, said the spike in the fuel price is due to the oil price rising towards $100 in recent days.
“Fuel prices are shooting up like a rocket on the back of oil being above $90 for the last days,” said Williams.
“All the cuts of the last few months are sadly being reversed, with the price of unleaded now heading back up towards 160p and diesel to a shocking 180p.”
Oil markets have been riding the wave of price changes since earlier this year after the US and Israel carried out joint strikes on several key Iranian sites on February 28.
Iran retaliated by striking sites across the Middle East and closing the Strait of Hormuz waterway. About 20% of global oil traded passed through the waterway, but the closure has rocked markets and pinched consumer pockets around the world.
Despite a brief reprieve after the US and Iran’s Memorandum of Understanding was signed last month, the reclosure of the strait and the restart of the conflict this month has once again shaken markets.
Brent crude rose by 6.9% to $100.6 a barrel shortly before 3pm on Thursday, July 23 following fresh attacks in the Red Sea.
In social media posts, US President Donal Trump accused Yemeni Houthis of shooting at two Saudi Arabian ships and threatened “major military punishment” on both them and Iran.
Earlier this week, Iran-backed rebel Houthis in Yemen said they would close the Bab el-Mandeb Strait – a key Saudi waterway out of the Red Sea since the Strait of Hormuz closed.
The average price of diesel has gone up 7.62p, or 5%, to 172.14p a litre in the last fortnight, while petrol has risen by 5p in two and a half weeks to 155.57p, a 3% increase.
“If petrol was to climb to 160p, it would surpass its Iran war high of 159.53p, seen on 28 May,” said Williams.
“Unless the renewed conflict is brought to an abrupt end soon, it’s looking like UK drivers are going to suffer some stinging summertime pump prices.”