Average UK petrol prices have reached 160p a litre, their highest level since November 2022, increasing costs for households as the summer holiday travel period begins. The rise follows renewed conflict involving Iran and the US, which has pushed up oil prices and reversed an earlier fall in pump prices after a Middle East ceasefire.

Diesel has risen by 14.5p to 179p a litre and could reach 185p within weeks unless oil prices fall significantly. The RAC estimates filling a family-sized petrol car now costs about £88, while a diesel tank costs £10 more; Brent crude rose above $90 a barrel after reported disruptions to shipping through the Strait of Hormuz. The AA expects 20.5 million UK drivers to travel during the third holiday week, although it says new price-reporting rules may be making forecourt prices track wholesale costs more closely.