Global oil prices rise as a result of Israel-Iran conflict

The global oil price jumped on Friday following the initial attacks by Israel and Iran's subsequent response.

Brent Crude - the main international benchmark - rose to over $78 a barrel on Friday (June 13) and has since fallen back to about $74.50, but it is still $10 higher than it was this time last month.

A rise in the cost of oil pushes up petrol and diesel prices and can fuel inflation more broadly.

Following Russia's invasion of Ukraine in 2022, oil prices soared to almost $130 a barrel, with drivers paying 40% more for a tank of diesel than they had the previous year. 

However, the cost of a barrel of oil, currently around $75, is still lower than it was in January of this year.

The Chancellor, Rachel Reeves, says that the Government will “take anything off the table” in response to the threat of rising energy costs.

However, experts suggest that there is currently less upward pressure on the price of oil than there was three years ago.

Following Russia's invasion of Ukraine, there was growing demand for energy as the global economy reopened after Covid but, with economies currently struggling and other oil producing countries able to increase capacity, the pressure on pump prices is not the same.

Diesel fell by 2 pence in May, falling below 139p per litre (ppl) for the first time since September 2021, according to analysis from the RAC. 

Diesel dropped from 140.5p to 138.4p, while petrol also came down by 2p, from 134p at the start of May to 132.3p by the close – the lowest price for petrol since early July 2021.