UK fuel prices climb again as Iran war renews oil-market pressure

UK petrol and diesel prices are rising again after the collapse of peace talks to end the US–Israel war with Iran, with pump costs expected to keep climbing as wholesale oil strengthens, Britain's AA and RAC motoring groups say. The BBC reports the renewed increases follow a brief reprieve after a US–Iran framework deal in June. [BBC: https://www.bbc.co.uk/news/articles/c20zgjzz0e4o]

The conflict, which began on 28 February, disrupted energy production and transport across the Middle East. Brent crude — the global benchmark — spiked above $120 a barrel at the peak and had fallen back toward $70 after the June framework agreement, but has since climbed to around $87 a barrel as tensions resurfaced, according to the BBC.

According to the RAC, the average UK petrol price has risen to 152.54p a litre and diesel to 167p, up from early-July lows of 150.50p (petrol) and 164.52p (diesel). The motoring group's head of policy, Simon Williams, said the increases are "likely to keep coming thick and fast" because of the jump in Brent.

Analysts note that every $10 rise in the oil price adds roughly 7p a litre at the pump, and that because oil is shipped slowly, wholesale moves take about a fortnight to filter through to forecourts. The BBC reports fuel retailers have denied price-gouging allegations, and the UK's markets regulator said it had "not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis."

The wider shock stems from the Middle East conflict's effective closure of the Strait of Hormuz — a chokepoint for about 20% of the world's oil and liquefied natural gas — which limited global supplies. Experts cited by the BBC warn a return to normal shipping volumes will take time and that the war's impact on the global economy could persist for months.

_Source Reporters corrects factual errors as soon as they are confirmed._