UK Petrol Seen Falling 8p to 148p as US-Iran Deal Reopens Hormuz
Updated
Updated · inews · Jun 16
UK Petrol Seen Falling 8p to 148p as US-Iran Deal Reopens Hormuz
3 articles · Updated · inews · Jun 16
Summary
RAC expects UK petrol prices to drop from 156p to 148p a litre within two weeks, with diesel falling from 177p to below 160p after oil prices eased on hopes of a US-Iran agreement.
The expected Friday deal would reopen the Strait of Hormuz, where at least 1,250 vessels have been trapped since February and which normally carries about a fifth of global oil and gas supply.
Relief may be gradual: analysts say trade flows could take 30 to 45 days to normalize, while mine clearance, insurance costs and a 60-day limit in the memorandum leave the reopening uncertain.
UK drivers have already paid about £4 billion extra for fuel during the crisis, while the Treasury collected an additional £670 million in VAT; pre-war pump prices of 132p petrol and 141p diesel may stay out of reach.
Broader inflation pressures are likely to linger, with UK food inflation seen reaching 9% by year-end and cheaper flights or goods from medicines to electronics unlikely to arrive quickly.
The Strait reopens, but with deep supply chain damage, are permanently higher prices for fuel, food, and goods the new normal?
The Hormuz crisis exposed massive supply chain risks. What is the next global chokepoint that could trigger a similar economic collapse?
With Israel vowing to ignore the ceasefire, can the fragile 60-day peace deal for the Strait of Hormuz actually last?
UK Fuel Prices Drop in Wake of US-Iran Peace Deal: Immediate Relief, Inflation Impact, and Long-Term Energy Strategy
Overview
The US-Iran peace deal in mid-2026 brought immediate stability, leading to the gradual reopening of the Strait of Hormuz and a noticeable increase in oil flows. This boosted global crude oil supply, which quickly drove down oil prices and resulted in falling petrol and diesel prices for UK motorists. As oil shipments resumed, expectations grew for further reductions in fuel costs, with analysts predicting continued relief if stability holds. While the full return to normal is expected by year-end, the peace deal’s ripple effects are already easing inflation pressures and offering hope for lower household energy bills across the UK.