Britons could face the highest ever petrol prices as a deepening crisis in the Middle East pushes global oil costs to new heights.
Middle East conflict pushes oil and UK petrol prices higher
Experts warn that petrol could hit £2 per litre, driven by a surge in oil prices caused by attacks on key regional infrastructure and Iran’s effective blockade of the Strait of Hormuz, a vital shipping route for a fifth of the world’s oil.
On a visit to a London community centre, Labour leader Sir Keir Starmer said the UK economy is more “resilient” than during the 2022 crisis following Russia’s invasion of Ukraine, but he warned that prolonged conflict would inevitably affect households and businesses.
He said: “The longer this goes on, the more likely the impact on our economy."
Sir Keir also stressed the government’s monitoring and international coordination to reduce the potential fallout.
In contrast, former US President Donald Trump dismissed the rising energy costs, calling them a “small price to pay” for neutralising Iran.
On his Truth Social platform, he wrote: “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY!”
Oil prices have surged above $100 per barrel for the first time in years, with analysts warning a possible rise to $150 per barrel. The previous UK petrol record was 191.4p per litre in 2022; current average prices are around 140p. Escalating tensions have already sent global stock markets sliding, with the FTSE 100 down more than 180 points and FTSE 250 falling 2.3% at the opening of trading.
The UK government is considering emergency measures, including a potential joint release of oil reserves coordinated by the International Energy Agency.
G7 ministers, including Chancellor Rachel Reeves, are holding an emergency meeting to discuss options. Reeves had previously highlighted that the UK’s finances are relatively stable, though the Office for Budget Responsibility warned that a 35% market correction could cost £26 billion, wiping out projected fiscal headroom.
Meanwhile, energy supplies in Britain are under scrutiny. Natural gas reserves have fallen from 18,000 GWh last year to 6,700 GWh, barely covering 1.5 days of demand. Communities Secretary Steve Reed sought to reassure the public, saying storage levels are “normal for the time of year” and stressing that the government can only control domestic measures, not international crises.
The crisis is further intensified by Iran naming Mojtaba Khamenei as successor to Supreme Leader Ali Khamenei, signalling the continued influence of hardliners.
US Defense Secretary Pete Hegseth told CBS News that Washington will “set the terms” for Iran’s surrender, reinforcing the rhetoric of firm US military intent.
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