The cost of fuel could reach a new high as the price of a barrel of oil pushes past the $100 (£75) point, according to the RAC. Pump prices have "surged" since hostilities resumed between the US and Iran.
Strait of Hormuz closure
As a result of the conflict, the crucial Strait of Hormuz has been closed, slowing down the vital shipping lane which carries around 12% of the world's trade, including a fourth of global container traffic. Vital oil shipments have also been put at risk by continued attacks on oil freight. Because of this, the price of Brent crude oil has risen by more than 6% to around $100 a barrel, the highest level since May, before the US and Iran reached a preliminary peace agreement that has since ended.
RAC warning
Simon Williams, RAC head of policy, said: "With oil breaching the $100-mark for the first time in two months, prices at the pumps have surged again since yesterday, taking the cost of filling up back to a level last seen in mid-June – something we all hoped we'd seen the back of.
"The average price of unleaded jumped by more than half a penny and is now up nearly 6p (5.6p) a litre since 6 July to 156.19p. Diesel, which went up by another penny, has undergone an even sharper rise at almost 9p (8.6p) in just over two weeks to the point where it's averaging 173.15p. Since the Iran war lows, this translates to percentage increases of 4% and 5% respectively."
As it stands, the cost to fill an average-sized petrol-powered car is £86, or £95 for a diesel equivalent. "Unless the hostilities end soon, it's hard not to see the price of petrol reaching a new Iran war high", added Mr Williams.
