US-Iran Conflict Drives Global Fuel Prices to Record Highs
Geopolitical conflict between the US and Iran has spiked global oil prices, triggering retail fuel increases in the UK and UAE and record profits for Shell.
Global energy markets are experiencing severe volatility as military exchanges between the Federal government of the United States and Iran drive Brent crude prices above $100 a barrel. The crisis began with joint US and Israeli strikes on Iranian sites on February 28, leading to Iranian retaliation and the closure of the Strait of Hormuz, a waterway critical for 20% of global oil trade. Further instability stems from Houthi militant attacks in the Red Sea and drone strikes on gas vessels in Egypt.
Retail fuel costs have surged globally. In the United Kingdom, petrol prices hit a new high of 160p per litre, while diesel rose to 179p. The Government of the United Kingdom has encouraged motorists to use the new Fuel Finder scheme to mitigate costs. Similarly, the UAE Fuel Price Committee increased retail petrol and diesel prices effective August 1, citing the maritime embargo on Saudi Arabia and US-Iran hostilities.
Energy corporations have seen significant windfalls amid the crisis. Shell reported a second-quarter net profit of $9.84 billion, more than double its 2025 results. While CEO Wael Sawan attributed this to operational performance, political leaders and environmental groups have condemned the profits as obscene. Analysts from Wood Mackenzie note that the price surge reflects geopolitical conflict rather than underlying demand, warning that sustained costs could increase global inflation.
