Experts have issued warnings to motorists over fears petrol and diesel prices could soar in the near future as tensions and attacks in the Middle East reach a boiling point.
The conflict between Iran, Israel and the United States continues to rage on, with the US taking direct military action by targeting three nuclear sites across Iran.
In a retaliatory move, Iran attacked the Al Udeid base in Qatar, which houses almost 8,000 US army personnel, although no one was injured and air defence systems blocked all missiles.
Industry experts have warned that the instability in the region could impact global oil prices, which would be reflected with higher prices at forecourts in the UK.
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Analysts have predicted how oil prices could continue to rise in the coming months amid turmoil in the Middle East
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It comes as Iran threatens to close the Strait of Hormuz, which sees around 20 per cent of the world's oil consumption pass through the strategic trade route.
If this were to happen, transportation of oil around the world would be hampered, forcing oil prices to spiral and having a knock-on effect on petrol and diesel prices.
Analysts from Goldman Sachs suggested that prices for Brent crude oil could hit $110 (£81.31) in a "worst-case scenario" if the Strait of Hormuz is blocked.
Despite this, it predicts that prices for Brent could average around $95 (£70.23) per barrel towards the end of the year.
Iran fired missiles at the Al-Uleid military base in Qatar yesterday
REUTERS
The financial experts warned: "While the events in the Middle East remain fluid, we think that the economic incentives, including for the US and China, to try to prevent a sustained and very large disruption of the Strait of Hormuz would be strong."
Similarly, HSBC suggested that oil prices are expected to rise if the conflict continues, potentially rising to above $80 (£59.14).
However, it forecast that easing tensions and an end to the hostilities could be seen, then oil could fall to $65 (£48.05) by the fourth quarter of the year.
In the last 24 hours, at least two supertankers, which can carry two million barrels of oil, have performed U-turns near the Strait of Hormuz following rising tensions and a number of strikes in the Middle East.
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Iran has called for the Strait of Hormuz to be closed
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Reuters also reported that shipping rates for supertankers have spiked in recent days, more than doubling to $60,000 (£44,367) a day.
Simon Williams, head of policy at the RAC, confirmed that the average price of fuel had risen over the last seven days in response to global tensions.
Petrol has jumped by 1.5p per litre to 133.5p, while diesel has risen slightly more to 140p - an increase of two pence compared to the week before.
Williams added: "Although the cost of a barrel of oil jumped by $5 (£3.70) to $74 (£54.73) straight after Israel's June 13 attack on Iran, so far it hasn’t climbed much higher.
Petrol and diesel prices peaked across the UK in the aftermath of the Russian invasion of Ukraine
PA"It's now at trading around $77 (£56.95) - $12 (£8.88) a barrel more expensive than it has been for the last three months - which is not yet enough to cause a major hike at the pumps."
The expert suggested that supermarkets and major providers could continue to "squeeze" drivers if they want to keep profits high.
He said: "If, however, retailers are set on maintaining margins of around 12p a litre, we may well see the average price of fuel go up further.
"It's also important to note that the oil price is a long way off the $137.72 (£101.85) seen in the early days of the Ukraine war in spring 2022 which led to average prices reaching record highs in the summer of 191.5p for petrol and 199p for diesel."
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