// BBC BUSINESS NEWS — FINANZA
UK petrol prices hit highest level since Iran war began
UK petrol prices have risen to their highest level since the beginning of the Iran war as the conflict continues to hit drivers' finances.
The average cost of petrol has reached more than 163p per litre, according to motoring group the RAC, which warned prices could climb higher yet.
The price of fuel tends to track the wholesale price of oil, which surged when the Iran conflict began on 28 February. The fighting has severely disrupted oil supplies across the Middle East.
Prices then nosedived when US and Iran agreed to a framework deal to end the conflict in June, but they have risen again since the collapse of peace talks.
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 (£7.44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre.
Since the 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 conflict, Brent was about $70 a barrel, but the fighting saw it peak at above $120.
In early July, after the framework deal was signed, prices fell back to near the $70 a barrel mark.