What's happening to petrol prices now oil is back to pre-Iran war levels?

Breaking news from the markets: What's happening to petrol prices now oil is back to pre-Iran war levels? Image source, Maskot/Getty ImagesByFaarea Masud, Alex Daniel and Michael Race, Business reportersPublished2 March 2026Updated 24 minutes agoMotorists in the UK are already seeing cheaper fuel prices after the US and Iran struck an agreement to end their war, with further falls expected in the coming weeks. When the conflict began on 28 February, fuel costs jumped as the war significantly disrupted the production and transportation of energy across the Middle East.

However, in recent weeks they have dropped and the framework deal reached between the US and Iran has sent them to their lowest point since the first days of the war in early March. Motoring group the AA has said it expects pump prices to fall further and "the timing is perfect for the start of the summer holidays". Meanwhile rival group the RAC has said price reductions "should be faster and greater, particularly for diesel".

Economic Details

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. Analysts say every $10 (£7.

53) 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. Before the conflict, Brent was about $70 a barrel, but the conflict saw it peak at above $120.

The price has been slipping in recent weeks and after the framework deal was signed it fell to around $76 a barrel. It has continued to drop and at one point fell below $72. 48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February.

Analyst Views

What has happened to petrol prices in the UK? According to the RAC, the price of petrol reached an Iran war peak of 159. 53p a litre on 28 May, while diesel's highest price during the conflict was 191.

54p a litre on 15 April. Since 28 May, the price of petrol has come down. The RAC said that on Friday, 26 June show the average price of petrol had fallen 2p in a week to 151.

98p and diesel by 4p to 168. The RAC says it now costs £83. 59 to fill up a 55-litre family car with petrol and £92.

Economists are analysing what the news means for the markets.