UK petrol prices have reached their highest level since the start of the Iran conflict, with the average cost now over 163p per litre. The RAC, a leading motoring organisation, has warned that prices may rise further as the ongoing situation continues to affect drivers' expenses. The conflict, which began on 28 February, disrupted oil supplies across the Middle East, causing wholesale oil prices to increase. Although prices dropped temporarily after a framework deal was signed in June to end the conflict, they have risen again following the collapse of peace talks. The cost of petrol and diesel at the pump is closely tied to the price of crude oil, which is a key ingredient in both fuels. Higher wholesale oil prices lead to higher fuel costs for consumers. Analysts estimate that a $10 increase in the price of a barrel of oil raises the cost of fuel at the pump by about 7p per litre. Brent crude, the global benchmark for oil prices, has been highly volatile since the conflict began. It peaked at over $120 a barrel during the early stages of the war, before falling to around $70 after the framework deal was signed in June. However, with the collapse of peace talks, prices have climbed back to around $94 a barrel. In the UK, petrol prices have reached their highest point since the war began, according to the RAC. Diesel, however, remains below its peak of 191.54p per litre recorded on 15 April. In early July, petrol prices dropped to around 150.59p per litre, and diesel to 164.52p per litre. Since then, prices have risen again, with petrol now at 163.6p per litre and diesel at 184.99p per litre. Simon Williams, the RAC’s head of policy, warned that with oil prices remaining high, drivers are likely to see a noticeable increase in fuel costs in the coming weeks. The impact of the Iran conflict on oil prices has been significant due to its effect on the Strait of Hormuz, a crucial shipping route for oil and liquefied natural gas. The strait handles about 20% of the world’s oil shipments, and its closure during the conflict has limited global supplies. Even if a deal is reached to reopen the strait, experts say it will take time for shipping levels to return to normal. The ongoing conflict is expected to continue influencing global oil prices and the broader economy for months to come.