Global fuel prices have shown signs of stabilization following a temporary ceasefire between the U.S. and Iran, though experts warn the situation remains volatile. Average petrol prices in the UK rose by less than half a penny between Thursday and today, marking a slowdown in the rapid increases seen since the conflict began on February 28. The RAC, a UK motoring organization, attributed this to Brent crude prices dipping below $100 a barrel for three consecutive days. However, the Strait of Hormuz, a critical oil transit route, remains partially blocked, leaving supplies uncertain.
In the U.S., the national average gas price held steady at $4.125 per gallon on Monday, following three days of declines. The drop came after the U.S.-Iran ceasefire announcement, though prices remain 17% higher than a month ago and 30% higher than a year ago. The RAC noted that while pump price increases have slowed, fluctuations could resume if geopolitical tensions escalate.
Petrol prices in the UK have surged nearly 20% since the conflict began, adding £14 to the cost of filling a 55-litre tank. Diesel prices have risen even faster, climbing 35% over the same period, partly due to Britain’s reliance on imports. The RAC’s fuel expert, Simon Williams, cautioned that any relief at the pumps depends on the reopening of the Strait of Hormuz and broader market stability.
Meanwhile, U.S. gas prices have been influenced by multiple factors beyond the Iran conflict, including severe winter weather that disrupted refinery operations earlier this year. Prices began rising sharply in March, coinciding with military operations in the region. Despite recent declines, analysts warn that long-term trends remain uncertain.