Oil prices are climbing toward the $100 per barrel mark, driven by renewed US military strikes on Iran and Houthi attacks on tankers in the Red Sea. This surge is already hitting UK drivers at the pump, with petrol averaging 155.57p per litre and diesel jumping to 172.14p, according to the RAC.
Why Oil Prices Are Rising
The conflict escalation began when the US launched 12 consecutive days of strikes on Iranian targets, ending any hopes of a truce. Simultaneously, Yemen’s Houthi rebels attacked Saudi oil tankers in the Red Sea, threatening global supply routes. Brent crude soared to $98.88 on Thursday, just shy of the psychologically important $100 threshold not seen in months.
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Impact on UK Fuel Prices
Simon Williams, head of policy at the RAC, described the situation: “Fuel prices are shooting up like a rocket.” Diesel has risen 8p (5%) in two weeks, while petrol is up 5p (3%) in two and a half weeks. If current trends continue, unleaded could hit 160p—surpassing the Iran war high of 159.53p recorded in May.
| Fuel Type | Price on 6 July | Current Price | Change |
|---|---|---|---|
| Petrol (Unleaded) | 150.59p | 155.57p | +4.98p |
| Diesel | ~164p (low) | 172.14p | +8.14p |
Global Energy Market Ripple Effects
Oil above $90 for consecutive days is reversing months of price cuts. The RAC warns that unless the conflict ends abruptly, UK drivers will face “stinging summertime pump prices.” Brent crude’s rapid ascent also pressures airlines, shipping, and manufacturing.
Key Takeaways for Consumers
- Petrol could reach 160p per litre, breaking May’s record high.
- Diesel may climb to 180p, adding £15 to a typical fill-up.
- US-Iran tensions and Red Sea disruptions show no signs of easing.
- Motorists should consider fuel-efficient driving and compare station prices.
FAQ
Why are oil prices near $100 per barrel?
Oil prices are rising due to US military strikes on Iran and Houthi attacks on tankers in the Red Sea, disrupting global supply and boosting geopolitical risk premiums.
How much have UK petrol prices increased?
UK petrol averaged 155.57p per litre, up from 150.59p on 6 July. Diesel hit 172.14p, rising nearly 8p in two weeks.
Will fuel prices keep rising?
If the conflict persists, petrol could exceed 160p and diesel 180p. The RAC says only a rapid de-escalation can stop the upward trend.
Stay updated with our Business blog for real-time analysis of oil markets and UK fuel prices. Check back tomorrow for more live coverage.
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