Pump prices hit new Iran war highs as oil prices spike – with Brits facing fresh cost of living crisis
Petrol and diesel prices in the UK have reached their highest levels since August 2022, as the Israel-Iran conflict continues to disrupt global oil supplies. According to the RAC, diesel hit 191.68p and petrol reached 169.68p a litre on Monday, with the motoring group warning diesel could soon surpass its all-time record of 199.05p set in June 2022, shortly after Russia's invasion of Ukraine.
The renewed surge stems from fears that Saudi Arabia could run out of export stocks within days after drone strikes from Iraq badly damaged its 745-mile east-west pipeline, forcing Riyadh to shut it down. The pipeline normally reroutes around four million barrels a day to the Red Sea port of Yanbu, bypassing the Strait of Hormuz, and its closure threatens 4% of global oil supplies. RAC head of policy Simon Williams said filling a 55-litre family car now costs over £93 for petrol and more than £105 for diesel, with prices up 8p a litre since early September and oil trading above $100 a barrel.
- UK pump prices hit highest levels since August 2022 amid Iran war
- Saudi pipeline damaged by drone strikes, threatening 4% of global oil supply
- Filling a family car now costs over £93 petrol, £105 diesel
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Petrol and diesel prices in the UK have climbed to their highest levels since August 2022, hitting many drivers' wallets amid the wider cost of living squeeze. The rise is linked to the ongoing conflict between Israel and Iran, which has unsettled global oil markets and pushed the price of crude oil upward.
A key factor is Saudi Arabia, one of the world's largest oil exporters. Its main east-west pipeline, which carries a large share of its oil to an export port and helps it avoid a narrow and strategically important shipping route in the Gulf, has been damaged and shut down, raising concerns about how much oil the country can supply to the rest of the world.
Fuel prices in Britain are heavily influenced by the global cost of crude oil, so disruptions to major oil producers can quickly feed through to the price drivers pay at the pump. The RAC, a UK motoring organisation, tracks these prices and has previously flagged how close they are getting to the record levels reached in 2022, after Russia's invasion of Ukraine caused a similar shock to energy markets.