Middle East Tensions Drive Oil Prices Above $100 a Barrel

Global oil prices have surged above $100 a barrel due to ongoing tensions in the Middle East. The conflict between the US and Iran has disrupted energy production and transportation, leading to higher fuel costs for drivers.

The price of petrol and diesel at UK pumps has increased as a result, with the average cost of petrol reaching its highest level since the Iran war began. Simon Williams, head of policy at motoring organisation RAC, said 'there's no sign of any relief yet' for drivers.

Wholesale oil prices have been volatile since the conflict started, influenced by news of further conflict and hopes of an end to the war. Analysts say every $10 increase in the oil price pushes up pump prices by roughly 7p a litre.

The UK is heavily reliant on oil imports from countries such as the US and Norway. Although some oil is produced domestically, most is exported for refining elsewhere.