// BBC BUSINESS NEWS — FINANZA
Why UK diesel prices have breached the £2 per litre mark
The price of diesel in the UK has breached the £2 per litre mark for the first time, as the fallout from the US-Israel war with Iran continues to drive up costs.
The average price of a litre of diesel at the pump stands at an all-time high of 200.01p, according to the RAC motoring body.
Over the past seven months, the Iran war has severely disrupted the production and transportation of oil across the region, causing the price of fuels made from crude to surge.
Motor fuel prices fell back when the US and Iran agreed in June to a framework deal to end the fighting, but rose again as tensions resurfaced.
Meanwhile, US President Donald Trump has responded to rising prices by mulling a ban on US diesel producers selling overseas - a move which could push UK prices even higher.
Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive. The price of petrol and diesel is also heavily influenced by demand and refining capacity.
Analysts say every $10 (£7.55) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre.
Since the Iran war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.
Generally speaking, news of further conflict drives the price up while hopes of an end to the war pushes the price down.
Before the Middle East conflict, Brent was trading just over $70 a barrel but the fighting saw it peak at above $120.