Fuel Price Drop May Be Short-Lived as Oil Surges on Middle East Tensions
While petrol and diesel prices fell last month, the relief at the pumps could be short-lived. A sharp rise in crude oil prices, sparked by escalating tensions between Israel and Iran, is expected to push fuel costs higher in the coming weeks.
Oil markets remain on edge following Israel’s surprise strike on Iran last Friday, which prompted a missile response from Tehran. Though prices have stabilised for now, they remain elevated after recent gains. Brent crude, the global benchmark, is trading at $76.38 a barrel—around 10% higher than pre-conflict levels and the highest since February.
Shipping traffic through the region has already started to show signs of strain. While there is no full-scale exodus yet, companies are exercising extreme caution, and analysts warn that any disruption—particularly a closure of the Strait of Hormuz—could have serious implications for global supply chains and energy prices.
“A closure of the Strait would cause a significant supply shock and could send oil prices soaring further,”
said Susannah Streeter, head of money and markets at Hargreaves Lansdown.“This would feed through to the pumps quickly, just as consumers were beginning to feel some relief.”
Markets are watching closely, with energy costs now back in focus as a key driver of inflationary pressures.
