Cost of Iran Oil Crisis to UK Drivers Reaches £4bn
RAC Foundation says higher pump prices since the Middle East conflict began have added £3 billion to diesel costs and just over £1 billion to petrol.
- President Donald Trump announced on Monday a completed US-Iran peace deal reopening the Strait of Hormuz without tolls, sending Brent crude Oil prices tumbling more than 4% to just above $83 per barrel, their lowest level in three months.
- The Motoring research charity, the RAC Foundation, estimates the Iran Oil crisis has cost UK drivers £4 billion through higher fuel prices since the Middle East conflict began on February 28, including £3 billion for diesel and over £1 billion for petrol.
- Average pump prices for petrol and diesel at forecourts remain about 24p and 36p respectively more expensive than pre-war levels, while the Treasury has received almost £670 million in additional VAT revenue from inflated fuel costs.
- Prime Minister Sir Keir Starmer announced last month that a planned fuel duty rise from September 1 has been scrapped until at least year-end, offering motorists temporary relief from escalating costs.
- With the Strait of Hormuz reopening, Oil markets face stabilization after months of restricted tanker traffic that pushed prices to their highest levels since 2022, though broader economic damage from prolonged elevated energy costs cannot be reversed immediately.
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Evening Standard
perspectivemedia.comCost of Iran oil crisis to UK drivers reaches £4bn
Iran’s restrictions on tankers passing through the Strait of Hormuz led to oil prices hitting their highest level since 2022.
By Hanna Ziady, Auzinea Bacon and David Goldman, CNN - Oil prices plunged on Monday, hitting their lowest levels in more than three months, after the United States and Iran announced they had reached an agreement to end the U.S. blockade of Iranian ports and reopen the vital Strait of Hormuz. Brent crude, the global benchmark, fell 5% to $82.91 a barrel shortly after 5:00 a.m. ET, after closing Friday at its lowest level since March 5, the first…
Oil prices fell to their lowest level since March after the US and Iran announced they would sign a memorandum of understanding on a peace deal on Friday. Brent crude futures fell $3.58, or 4.1 percent, to $83.75 a barrel by 02:04 CEST. US West Texas Intermediate (WTI) crude futures were down $4.01, or 4.72 percent, at $80.87 a barrel, Reuters reported.
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