Iran ceasefire: What it means for energy bills, fuel, mortgages and holidays

Iran ceasefire: What it means for energy bills, fuel, mortgages and holidaysA two-week ceasefire agreed by Donald Trump and Iran has already seen oil prices slump and stock markets surge - but what could be the benefits for UK households if it holds?CommentsMoneyGraham Hiscott Business and Consumer Editor10:00, 08 Apr 2026View 5 ImagesThreat of interest rate hike has receded after Middle East ceasefire announced(Image: Getty)Donald Trump’s announcement of a two-week ceasefire between the US and Iran brings hope of and end to the conflict in the Middle East.‌Tehran has agreed a halt to its blockade of oil and has shipments through the key Strait of Hormuz, which had become one of the main focuses of the war.‌After more than five weeks of war , the economic impact has been felt by ordinary households around the world - including the UK.‌With the prospect of peace, what does it mean for families here already reeling from the ongoing cost of living crisis?Fuel pricesView 5 ImagesFuel prices could level off - and fall - thanks to drop in cost of oil(Image: AFP via Getty Images)Petrol - and especially diesel - was where UK households saw the impact of the crisis most, leading to warning about “price gouging” - with little lag between the cost of oil surging and motorists feeling pain at the pump.‌Pressure will rightly be on forecourts to pass on the sharp fall in oil prices - down below $95 a barrel - in the wake of the ceasefire deal.According to the AA, the nationwide for average for unleaded now stands at 157.2p a litre, and 189.2p for diesel. Before the war began, unleaded was 132.83p and diesel 142.38p.Nigel Green, chief executive of financial advisory deVere Group, predicted fuel prices could fall in the coming days. “Drivers will feel some short-term relief as petrol and diesel prices edge lower,” he forecast.‌Energy billsView 5 ImagesEnergy bills could still rise in July even though wholesale gas costs dropped in aftermath of Iran ceasefire deal(Image: Getty Image...