What's happening to UK petrol and diesel prices now the US and Iran have a deal?

What's happening to UK petrol and diesel prices now the US and Iran have a deal?Image source, Maskot/Getty ImagesByFaarea Masud and Alex Daniel, Business reportersPublished2 March 2026Updated 19 June 2026Motorists in the UK are already seeing cheaper fuel prices after the US and Iran agreed to end their war, with further falls expected in the coming weeks.When the conflict began on 28 February, fuel costs jumped as the war significantly disrupted the production and transportation of energy across the Middle East.However, in recent weeks they have dropped and the framework deal reached between the US and Iran has sent them to their lowest point since the first days of the war in early March.Motoring group the AA said it expects pump prices to fall further and "the timing is perfect for the start of the summer holidays".How do wholesale oil prices affect the cost of petrol and diesel at the pump?Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive.Analysts say every $10 (£7.53) increase in the oil price pushes up pump prices by roughly 7p a litre.Since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.Before the conflict, Brent was about $70 a barrel, but the conflict saw it peak at above $120. The price has been slipping in recent weeks and after the framework deal was signed it fell to around $76 a barrel on Thursday, before rising to just under $80 on Friday.What has happened to petrol prices in the UK?According to the RAC, the price of petrol reached an Iran war peak of 159.53p a litre on 28 May, while diesel's highest price during the conflict was 191.54p a litre on 15 April.Since 28 May, the price of petrol has come down by 4.8p to 154.7p a litre, with diesel reducing by 10.3p to 174.3p a litre.The RAC says it now costs £85.05 to fill up a 55-litre family car with petrol – £12 more than it did...