Petrol stations across the UK are closing as fuel prices soar past £2 per litre amid the ongoing conflict between the US and Iran. The war, now in its third month, has disrupted global oil supplies, with the Strait of Hormuz—a key chokepoint for about 25% of the world's seaborne crude—effectively closed. This has sent petrol and diesel prices to record highs, with the national average in the US reaching $4.55 per gallon, up roughly $1.50 from pre-war levels.
Energy experts warn that even if peace were declared tomorrow, prices are unlikely to return to pre-war levels for months or even years. Denton Cinquegrana, chief oil analyst at Dow Jones Energy, said: 'For retail prices to drop $1.50, I think we could kiss that number goodbye for 2026.' The process of restarting oil production, repairing infrastructure, and clearing supply chain backlogs could take anywhere from six months to two years, according to industry estimates.
The closure of the Strait of Hormuz has halted the transit of approximately 20 million barrels of oil per day. Even if oil wells remain undamaged, traditional pumping methods in Gulf wells take longer to restart than US shale wells. Refineries also need time to be brought back online, and the logistics of repositioning oil tankers—which move at only 13 knots—could take three to five weeks.
In the UK, the impact has been severe, with many independent petrol stations unable to absorb the rising wholesale costs. The Petrol Retailers Association has reported that dozens of stations have temporarily closed, particularly in rural areas where margins are already thin. Motorists face prices exceeding £2 per litre for both petrol and diesel, with further increases expected as the summer driving season begins.
Jet fuel prices have also spiked, though some relief has come from reduced demand as airlines cut flights. Ryanair CEO Michael O'Leary noted on an earnings call that fewer people are booking flights due to higher costs. However, experts suggest that diesel prices may take longer to normalize than petrol, as US diesel production has been tight for several years.
