Drivers should prepare for significant petrol price increases within the next two weeks, the AA has warned, following US and Israeli strikes on Iran and subsequent disruptions to oil shipments through the Strait of Hormuz.
Edmund King, president of the AA, told The Times that the turmoil and bombing across the Middle East will disrupt global oil distribution, inevitably leading to price hikes. 'Within the next 10 to 12 days we could be seeing record prices at the pumps,' he said.
The warning comes after several oil companies suspended crude oil shipments through the Strait of Hormuz, the world's most vital oil export route. About 20 per cent of global oil and gas flows through this narrow shipping lane, and its closure could have serious consequences for the global economy.
Oil prices are expected to surge when the New York Futures market opens on Sunday evening. Meanwhile, Iran's Revolutionary Guards have issued warnings that no ship is allowed to pass through the strait, though the UK Navy said these orders were not legally binding.
Tanker trackers have shown vessels piling up near major ports such as Fujairah in the United Arab Emirates, while trading sources reported that multiple oil companies and tanker owners have halted shipments of crude oil, fuel and liquefied natural gas via the strait.
