Motorists in the UK could be facing cheaper fuel prices as a result of the US. Iran reaching an agreement to end their war.
When the conflict began on 28 February, fuel costs jumped as the war significantly disrupted the production. transportation of energy across the Middle East.
However, in recent weeks they have fallen. the framework deal reached between the US and Iran has raised hopes they will fall further.
Motoring group the RAC noted that oil prices have already fallen on news of the deal. "should quickly bring prices down at the pumps".
Crude oil is a key ingredient in petrol. diesel, which means that higher wholesale costs make filling up a car more expensive.
Analysts say every $10 (£7.53) increase in the oil price pushes up pump prices by roughly 7p a litre.
Since the war began. the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.
Before the conflict, Brent was about $70 a barrel, but the Iran war saw it peak at above $120. The price has been slipping in recent weeks. following news of the framework deal it fell to around $83 a barrel.
According to the RAC. the price of petrol reached an Iran war peak of 159.53p a litre on 28 May, while diesel's highest price during the conflict was 191.54p a litre on 15 April.
In the last week. the price of petrol has come down nearly 2p to 156.37p a litre, with diesel reducing by 3p to 177.89p a litre.
The RAC says it now costs £97.22 to fill up a 55-litre family car with diesel – £18.91 more than it did on 28 February,. £85.74 for a tank of petrol – £12.68 more than at the start of the conflict.
RAC head of policy Simon Williams said: "The oil price has already dropped as a result of the US Iran deal to open the Strait of Hormuz. is good news for drivers as this should quickly bring prices down at the pumps.
"If oil now begins to consistently trade around $85.. we should see the price of petrol reduce to 148p a litre from its current average of 156p in the next couple of weeks," he added.
"Diesel, which currently costs an average of 177p, ought to fall to under 160p."
Despite the conflict, petrol. diesel prices remained below the levels reached in the summer of 2022 following Russia's invasion of Ukraine, when petrol reached 191.5p a litre and diesel hit 199p.
Because transporting oil is a slow process. price movements in the wholesale markets take about a fortnight to show at the pump.
Fuel retailers have denied accusations of price gouging during the conflict. The official markets regulator investigated these claims andit had "not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis".
Agovernment scheme called Fuel Finderlets drivers compare the cost of fuel offered by petrol stations across the UK.
On 20 May Prime Minister Sir Keir Starmer saida planned 5p increase in fuel duty due in September would be postponeduntil 31 December. of the conflict.
The Middle East conflict sent global oil prices soaring as it effectively closed the Strait of Hormuz - one of the world's key water transport routes for oil, liquid natural gas. other essential commodities - limiting global supplies.
About 20% of the world's oil and liquefied natural gas normally passes through the waterway.
Analysis by BBC Verify showed. only a handful of ships have passed through the strait since the conflict began – in normal circumstances around 138 vessels make the crossing every day.
However, experts warn a return to normal levels of shipping through the Strait of Hormuz will take time,. the impact of the war will continue to affect the global economy for potentially months to come.
The UK is heavily reliant on oil and gas imports, with the majority coming from the US and Norway.
The price of oil on the global market determines how much the UK pays for it.
Although the UK does get some oil from the North Sea, most of that is exported for refining elsewhere.
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