Petrol prices have soared to their highest level in the UK since Donald Trump began the Iran War.
A litre of unleaded costs an average of 159.43p, 26.6p more than it was when hostilities began on 28 February, according to the RAC.
The motoring group warned that this is ‘likely to rise’, putting further pressure on already squeezed motorists.
This may be hinting at fears the strikes could destroy a fragile truce between America, Israel and Iran.
And given that the US launched what it labelled ‘defensive strikes’ on Iran overnight, this appears to be increasingly likely.
The Middle Eastern country branded the strikes, which the Americans claim hit missile launch sites and mine-laying boats in the Strait of Hormuz, as a ‘gross violation’ of the ceasefire all parties agreed to in April.
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Despite the strikes and Iran’s irate response, Secretary of State Marco Rubio said today the completion of the framework for a peace deal may ‘take a few days’.
Markets appeared unconvinced by his claims, as shown by the price of a barrel of Brent crude oil rising 2.4% to £73.16 ($98.50) following the news.
While up, this is far below the £89.14 ($120) peak a barrel cost at the height of the conflict in mid-April.
That said, rising wholesale prices, however small, will likely trickle down to consumers should the conflict reignite and the Strait of Hormuz not reopen fully.
The vital shipping lane, through which around a fifth of the world’s oil and liquefied natural gas (LNG) usually passes, has been largely impassable since the conflict began.
Its closure and uncertainty around when and if a deal will be approved continue to have an effect on world markets, Peter Schaffrik, global macro strategist at RBC Capital Markets, said.
‘It went from agreement is near to everyone needs to sign the Abraham Accords to bombing, so it’s not entirely clear what’s going on there,’ he said, referring to how the situation has flitted between open conflict and claims that a peace deal is imminent.
In more positive news, diesel is selling at an average of 184.96p a litre, having fallen 6.58p from its mid-April peak of 191.54p.
This marks the first time it has been below 185p a litre since 1 April, according to the RAC.
When looking at the wider picture, the conflict’s impact on the price of fuel remains stark.
A 55-litre tank of petrol for an average family-sized car now costs £87.69, which is £14.63 more than it was on 28 February, the RAC said.
The diesel equivalent is £101.73, a £23.42 increase over the same period.
Before today’s strikes, things had been looking more positive as the wholesale price of crude oil fell.
Just yesterday, Rubio said negotiators had a ‘pretty solid thing on the table’ and an agreement to end the conflict might be reached that day.
Trump also insisted the negotiations were ‘proceeding nicely’, while Iran’s more tepid response agreed that progress had been made but a deal was ‘not imminent’.
Brent crude fell 5.5% to £72.73 ($97.90) a barrel off the back of this before it rose when news of the strikes emerged.
Things now appear more uncertain, as leaders on all sides work to secure a peace which suits their separate, and often conflicting, agendas.