Petrol prices 'shooting up like a rocket' as oil hits $100 a barrel

Petrol prices 'shooting up like a rocket' as oil hits $100 a barrel - See more This is Money on Google - save us as a Preferred Source Fuel prices are 'shooting up like a rocket' as the conflict in the Middle East sends oil back above $100 a barrel. In a painful blow to British motorists, the average price of a litre of petrol has risen by 5p in the past two-and-a-half weeks to 155.57p while diesel is up almost 8p to 172.14p in a fortnight. That has added nearly £3 to the cost of filling up a 55-litre tank with unleaded and more than £4 to a tank of diesel. The surge in fuel prices on UK forecourts has been driven by the soaring price of oil since hostilities between the US and Iran resumed early this month. Brent crude – a key international benchmark – rose back above $100 a barrel yesterday for the first time since late May. Analysts warned of further increases after Iran-backed Houthi militants struck two oil tankers as part of its naval blockade on Saudi Arabia. The attack close to the mouth of the Red Sea risks creating a second chokepoint on the world's oil supplies after Iran's near closure of the Strait of Hormuz. Fuel prices have been risen as oil soared back to $100 a barrel Simon Williams, head of policy at motoring group RAC, said: 'Fuel prices are shooting up like a rocket. 'All the cuts of the last few months are sadly being reversed, with the price of unleaded now heading back up towards 160p and diesel to a shocking 180p. 'If petrol was to climb to 160p, it would surpass its Iran war high of 159.53p, seen on 28 May. Unless the renewed conflict is brought to an abrupt end soon, it's looking like UK drivers are going to suffer some stinging summertime pump prices.' The oil price has risen for five days in a row as the conflict in the Middle East escalates. The latest spike came as Yemen's Houthi rebels struck two Saudi oil tankers – widening the scope of the disruption. Until now, the war has choked off supply via the Strait of Hormuz. The Houthis are now targeting a separate key waterway, the Bab el-Mandeb Strait, creating a second choke point. Analysts at Goldman Sachs now believe Brent could top $120 in the fourth quarter and average $100 next year if the Strait of Hormuz remains disrupted – or go even higher if Bab el-Mandeb suffers persistent problems. Oil has been on a rollercoaster ride since Donald Trump's Iran war began at the end of February. It leapt from $72 before the war to a peak of $126 in April. The price slid back after a ceasefire and fragile peace deal, dipping to $70 by the start of this month. But since the deal collapsed it has spiralled sharply upwards again and climbed to as high as $101 yesterday. Jonathan Raymond, investment manager at Quilter Cheviot, said: 'The resumption of hostilities in the Middle East is forcing a reassessment of supply and demand dynamics in the oil market, pushing the price of oil to $100 per barrel for the first time since May. This is bad news. 'For households, the most immediate impact is likely to be higher petrol and diesel prices at the pump, with energy bills also at risk of rising in the months ahead. More expensive fuel and energy can ripple through the wider economy, increasing costs for businesses and ultimately feeding through into the price of food and other goods.' DIY INVESTING PLATFORMS Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Compare the best investing account for you