Brent crude, the global oil benchmark, momentarily surged to $119 (£90) a barrel this week, marking its highest level since the outbreak of the US-Israel conflict with Iran.
The dramatic price spike stems from Iran's effective blockade of the Strait of Hormuz—one of the world's most critical maritime energy choke points—in retaliation for US-Israeli air strikes that began in late February. The closure has sent a shockwave through international wholesale markets, triggering a severe knock-on effect for everyday fuel consumers.
Governments worldwide are deploying emergency measures to soften the blow. In Australia, transit authorities have made bus travel free to help commuters bypass the pumps, while Egypt has ordered cafes, shops, and restaurants to shut their doors early to conserve national energy supplies.
Motorists are absorbing the brunt of the immediate impact. In the United States, the AAA motoring group reports that prices at the pump have crossed the $4-a-gallon threshold for the first time in almost four years. Across the Atlantic, the UK's RAC recorded petrol prices surging to 152.8p a litre—a two-year high and a 20p jump since the conflict ignited. Diesel has been hit even harder, reaching 182.77p, roughly 40p higher than pre-war levels.
RAC policy chief Simon Williams noted that while petrol costs might level off if crude prices plateau, the trajectory for diesel remains pointed upward. British households are also bracing for a broader cost-of-living hit, with average domestic energy bills projected to climb by £288 annually starting in July.
Beyond the roads, the aviation sector is facing its own severe supply chain bottleneck. Analytics firm Vortexa revealed that the very last UK-bound shipment of Middle Eastern jet fuel to successfully bypass the blockade is slated to arrive by Friday.
"In 2025 there were an average of eight cargoes en route from the Middle East to the UK at any one time, so having none en route is quite unusual," explained Vortexa market analyst Mick Strautmann.
While the UK government maintains that alternative shipments are still arriving from the US, the Netherlands, and India, industry experts warn these imports fall short of replacing the Middle Eastern deficit. India, historically a major supplier to Europe, is reportedly diverting its exports to closer, highly lucrative markets in Southeast Asia.
The tightening supply is already grounded in consumer reality. Scandinavian airline SAS announced it will slash 1,000 flights in April alongside fare hikes, while Air France-KLM is raising ticket prices for its long-haul routes. Airlines like British Airways and EasyJet have temporarily shielded passengers from the surge thanks to pre-war fuel hedging contracts, but EasyJet cautioned that fares are likely to jump when those protective deals expire toward the end of summer.