UK petrol prices hit highest level since Iran war began

An important development from the financial markets: UK petrol prices hit highest level since Iran war beganImage source, Maskot/Getty ImagesPublished2 March 2026Updated 31 July 2026UK petrol prices have risen to their highest level since the beginning of the Iran war as the conflict continues to hit drivers' finances. The average cost of petrol has reached 160p per litre, according to motoring group the RAC. The price of fuel tends to track the wholesale price of oil, which surged when the Iran conflict began on 28 February as the fighting severely disrupted oil supplies across the Middle East.

Prices then nosedived when US and Iran agreed to a framework deal to end the conflict in June, but they have risen again since the collapse of peace talks. How do wholesale oil prices affect the cost of petrol and diesel at the pump? Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive.

Economic Details

Analysts say every $10 (£7. 44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre. Since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.

Generally speaking, news of further conflict drives the price up while hopes of an end to the war pushes the price down. Before the conflict, Brent was about $70 a barrel, but the fighting saw it peak at above $120. In early July, after the framework deal was signed, prices fell back to near the $70 a barrel mark.

When the peace talks collapsed, the price climbed back up again to above $100 a barrel, but are now around $90. What has happened to petrol and diesel prices in the UK? While petrol has hit its highest price since the Iran war began, according to the RAC, diesel remains below the peak of 191.

Analyst Views

54p a litre it reached on 15 April. In early July, the RAC said the average price of petrol sank to a low of 150. 59p per litre and 164.

52p per litre for diesel. Since then the prices have risen, with petrol now at 159. 97p a litre while diesel costs 178.

RAC head of policy Simon Williams said the price of diesel was likely to reach 185p a litre "in the next few weeks, barring any major oil price reduction". Despite the conflict, petrol and diesel prices remain below the levels reached in the summer of 2022 following Russia's invasion of Ukraine, when petrol reached 191. 5p a litre and diesel hit 199p.

Economists are analysing what the news means for the markets.