The average price of diesel in the UK has now surpassed 190p a litre, new figures reveal, having surged by more than a third since the escalation of the conflict.
However, experts suggest that a recent ceasefire agreement between the US and Iran offers a glimmer of hope that pump prices could soon "top out".
On Wednesday morning, the average diesel price stood at 190.6p, marking a 34% increase since 28 February, according to the RAC. Petrol prices are also continuing their upward trend, with unleaded reaching an average of 151.7p, a 19% rise since the conflict intensified.
Simon Williams, RAC head of policy, stated: "Both fuels are now at their most expensive since late 2022."
“The conditional ceasefire announcement may have taken some heat out of global oil prices, but the outlook for drivers in the UK remains highly uncertain.
“The best hope in the short-term is that pump prices stop rising at the rate they have been and hopefully top out in the coming days.”
Meanwhile, construction firms reported a record surge in cost inflation as the conflict in the Middle East weighed on new orders and confidence in the sector.
New figures showed the slump in the UK construction industry continued last month.
The latest S&P Global UK construction purchasing managers’ index (PMI) showed a reading of 45.6 in March, improving from 44.5 in February.
Any reading above the 50.0 threshold indicates that activity in the industry is increasing while anything below means it is contracting.
It means that the sector continued to decline in March but at a slightly slower pace than in February.
The latest figure marks the 15th month in a row that activity across the sector has fallen.
Tim Moore, economics director at S&P Global Market Intelligence, said: “UK construction companies indicated a sustained downturn in business activity during March, led by another steep reduction in residential work.
“March data suggested a challenging near-term outlook for construction activity as total new orders decreased at one of the sharpest rates seen over the past six years.
“Survey respondents commented on fragile consumer confidence and delayed investment decisions in response to the outbreak of war in the Middle East.”
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