The ongoing events in the Middle East are likely to result in higher fuel prices for consumers, starting at the pump. Recent reports show that petrol prices have risen by nearly 2.5p per litre, while diesel has increased by over 3p. Some areas have experienced a surge of up to 11p per litre, prompting drivers to fill up their tanks preemptively.

Oil prices have quickly climbed to over $82 per barrel, leading to warnings from the AA about inevitable pump price hikes in the near future. The group FairFuelUK estimates that prices could rise by 5p to 10p per litre in the coming weeks. Despite the potential increase, the current prices are relatively low, with petrol averaging 131.9p in February.

The situation worsened with the effective closure of the crucial Strait of Hormuz, responsible for shipping around a fifth of the world’s oil and gas. This disruption has led to a panic in global markets, eliminating approximately 14 million barrels of daily supplies. While there are sufficient stockpiles to manage the immediate impact, a prolonged crisis could lead to a significant oil price surge.

Households may face higher pump prices, affecting consumer confidence and finances. Calls have been made to halt a planned fuel duty rise in the autumn, as it could further burden consumers. The impact of rising oil prices extends beyond fuel costs, influencing prices of various goods sensitive to energy costs, including food and transportation services.

Despite the negative effects on households, some entities stand to benefit from the soaring fuel prices. Oil giants like BP and Shell have seen their shares rise post-attacks. Additionally, Russia could gain economically from the situation, as countries previously reliant on oil shipments through the Strait of Hormuz may turn to Russian oil instead, potentially boosting President Putin’s revenue amid the ongoing conflict in Ukraine.