European Petrol Prices Surge Amid Escalating Tensions Between Iran and the US

European petrol prices have hit record highs in Germany and the Netherlands as tensions between Iran and the US escalate, driving oil prices up. According to recent figures, the average price of a litre of Super E10 reached €2.215 in Germany, surpassing the previous high set after Russia's invasion of Ukraine. In the Netherlands, a litre of Euro95 hit a record €2.666 on September 2.

The conflict in the Gulf has had a direct impact on European household budgets, as almost no tankers are now passing through the Strait of Hormuz. As a result, Brent crude has traded near $91 a barrel in recent sessions, feeding through to higher pump prices across the continent. Higher prices have also lifted oil company earnings, with Shell posting its strongest quarterly profit since early 2023.

Many motorists are cutting back on expenses to cover fuel costs, with almost a quarter saying they were significantly affected. Diesel has been hit harder than petrol, given its tighter link to global trade and freight, and low water levels on the Rhine have compounded the pressure by limiting barge shipping and raising freight costs.

The war began on February 28 when the US and Israel struck Iran, after which Iran closed the Strait of Hormuz. On September 1, US Central Command said it struck IRGC targets in Iran.