Israel's attack on Iran: "That’s the end of the cheapest petrol prices in the UK for four years"

THE escalating conflict between Israel and Iran could lead to petrol prices in the UK spiking as global oil prices surge, experts have warned.

Hundreds of people have died in missile strikes between the two countries that show no sign of dissipating. 

After a 7% surge on Friday, Brent crude is up another 0.5% on Monday morning at $74.60 per barrel.

This could have a direct effect on petrol prices in the UK, experts claim.

Tony Redondo, Founder at Cosmos Currency Exchange, said it's the end of the relative downturn of the price of fuel at the pump for Brits.

He added: “Global oil prices are up, hitting their highest price in almost five months after Israel struck Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies. 

"That’s the end of the cheapest petrol prices in the UK for four years. Gold has been up to a one-month high as the markets swing to risk aversion mode. Stock markets will sell off. These are all predictable knee-jerk reactions.”

Philly Ponniah, Financial coach at Philly Financial, said the markets are in “risk-off mode” with investors choosing “safe havens”.

She said: “Markets are in classic risk-off mode. We saw a move to safe havens like gold and government bonds, while oil prices have surged on fears of supply disruption. UK petrol prices, which have been at four-year lows, may soon rise as the conflict puts upward pressure on energy costs.”

Prem Raja, Head of Trading Floor at Currencies 4 You, agreed.

He said: "Markets are reacting with a classic risk-off tone. Investors are seeking safe havens, and oil prices is rising with supply disruptions feared, potentially ending the UK’s run of low petrol prices.

"In the short term, expect volatility across equities, FX and commodities. Safe haven assets such as gold, the US Dollar and the Swiss franc typically benefit in these conditions, while sectors like aviation and consumer goods may face pressure. 

“However, historically, markets tend to absorb geopolitical shocks; unless there’s sustained escalation, equities are likely to shrug this off in the medium to long term. For now, caution and defensive positioning will dominate, but this may prove a short-lived disruption rather than a long-term trend.”

Riz Malik, Director at R3 Wealth, fears the escalating conflict may affect the UK's economy.

He added: "Further global instability is the last thing the UK economy needs. We could see a sell off in the equities market as investors often turn to safe havens like gold in times of uncertainty.

“We could also see the oil markets react sharply, putting renewed pressure on inflation, petrol prices and household energy bills at a time when the UK is already battling already high costs.”

David Belle, Founder and Trader at Fink Money, urged calm and predicted the global market's current instability will eventually stabilise again.

He said: “This latest escalation is a buying opportunity in equities, as the market will often get more scared than it should be and overhedge its positions. We've been here before and the ultimate impact on markets will be nothing. 

"Yes, there will be turbulence for a while in financial markets but there will be no significant outcome. These kinds of escalation happen fairly regularly and everything ultimately settles back down.”