Motorists in the UK are already seeing cheaper fuel prices after the US. Iran struck an agreement to end their war, with further falls expected in the coming weeks.
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 dropped. the framework deal reached between the US and Iran has sent them to their lowest point since the first days of the war in early March.
Motoring group the AA has said it expects pump prices to fall further. "the timing is perfect for the start of the summer holidays". Meanwhile rival group the RAC has said price reductions "should be faster and greater, particularly for diesel".
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 conflict saw it peak at above $120.
The price has been slipping in recent weeks andafter the framework deal was signedit fell to around $76 a barrel. It has continued to drop. at one point fell below $72.48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February.
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.
Since 28 May, the price of petrol has come down. The RAC said that on Friday, 26 June show the average price of petrol had fallen 2p in a week to 151.98p. diesel by 4p to 168.64p.
The RAC says it now costs £83.59 to fill up a 55-litre family car with petrol. £92.75 for diesel, However, this is still £10.50 and £14.40 respectively more than it did at the end of February before the conflict began.
The RAC's head of policy, Simon Williams, said: "Fuel prices are falling steadily in reaction to the drop in the price of oil. wholesale petrol and diesel costs which is good news for drivers who've had a torrid time at the pumps this year.
"But our analysis of wholesale data shows the reduction should be faster and greater, particularly for diesel. Drivers really ought to see average prices of below 150p for unleaded. below 160p for diesel in the next week or so."
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 said it had "not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis".
Agovernment scheme called Fuel Finder,externallets drivers compare the cost of fuel offered by petrol stations across the UK.
Luke Bosdet, the head of policy at the AA, said the group had been surprised at the speed that prices had fallen. put it down to the scheme.
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.
No evidence of widespread fuel price-gouging, watchdog says
Drivers can compare fuel prices at different petrol stations - how does it work?
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.
Despite the deal between the US. Iran, experts warn a return to normal levels of shipping through the Strait of Hormuz will take time, and the impact of the war will continue to affect the global economy for potentially months to come.
Why and how is US blockading Iranian ports in Strait of Hormuz?
Oil price predicted to remain above $100 for rest of year
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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