The global benchmark for brent crude oil has surged to $119 (£90) per barrel, approaching its highest level since the onset of the US-Israel conflict with Iran.
In response to the air strikes by the US and Israel that commenced on 28 February, Iran has significantly obstructed the Strait of Hormuz, a vital corridor for oil shipping.
Consequently, wholesale oil prices have experienced a dramatic increase, leading to the highest fuel prices seen in years.
Countries are implementing varied strategies to address the escalating oil prices, with Australia opting to make bus travel free, whereas Egypt is urging shops, restaurants, and cafes to close earlier in an effort to conserve energy.
In the United States, petrol prices at the pump have exceeded $4 a gallon for the first time in nearly four years, as reported by the AAA motoring organization.
In the United Kingdom, petrol has reached 152.8p per litre, marking a two-year high and approximately 20p increase since the beginning of the conflict, according to the RAC motoring organization.
Furthermore, the average price of diesel has risen to 182.77p, the highest since December 2022, and 40p more than when the war commenced.
Simon Williams, head of policy at the RAC, remarked that petrol prices could stabilize "if the cost of oil doesn't increase further, although diesel is likely to continue rising."
Projected increases in average energy bills in the UK indicate a rise of £288 per year for a typical dual-fuel household starting in July.
The airline industry is also facing challenges as jet fuel prices climb.
According to data firm Vortexa, the final shipment of jet fuel currently in transit from the Middle East to the UK is expected to arrive this week, specifically on Thursday or Friday.
Mick Strautmann, a market analyst at Vortexa, commented that during 2025, there were typically eight cargoes en route from the Middle East to the UK at any moment, making the absence of shipments unusual.
A spokesperson for the UK government stated that jet fuel shipments continue to arrive in the country, with imports sourced from India, the USA, and the Netherlands, among other regions.
However, Strautmann highlighted that despite India's historical role as a jet fuel supplier to the UK, India is currently prioritizing exports to Southeast Asia due to elevated prices.
George Shaw, senior insight analyst at Kpler, indicated that the shipment scheduled for this week originated from a refinery in the Red Sea and did not traverse the Strait of Hormuz.
In light of rising fuel costs, European airlines such as Air France-KLM are planning to increase long-haul fares, while Scandinavian carrier SAS has announced a price hike along with 1,000 flight reductions in April. British Airways' parent company, IAG, has hedged its fuel costs, and EasyJet has suggested that ticket prices may increase toward the end of summer as hedging agreements come to an end.
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