UK Economy Faces Record Diesel Costs Amid Geopolitical Tensions

The UK economy is facing unprecedented pressure as diesel costs reached an all-time high of 199.18p per litre, surpassing the previous record from June 2022.

Brent crude prices also rose above $96 per barrel after a four percent jump on Monday morning, following renewed uncertainty around peace between the US and Iran.

The surge in oil prices has led to increased borrowing costs for the UK government, with the two-year gilt yield up six basis points to 4.75 per cent and the 10-year yield up five basis points to 5.4 per cent.