Motorists could soon face record-breaking costs at the pump as diesel prices are forecast to exceed £2 a litre within weeks.
Greg Newman, founder and chief executive of Onyx Capital, said: "I am very confident the diesel price will surpass £2 a litre in the next month."
Such a rise would take prices beyond the previous peak of £1.99 recorded during the 2022 energy crisis following Russia’s invasion of Ukraine.
For drivers with a standard 55-litre fuel tank, the cost of filling up would rise to around £110, compared to roughly £78 before the conflict began in late February.
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The increase is being driven by escalating tensions in the Middle East, with the Strait of Hormuz closed and strikes targeting oil infrastructure across the Gulf.
Brent crude prices have risen sharply since fighting began in Iran, climbing from $73 per barrel to around $112.
Analysts have warned prices could rise further, with some forecasts suggesting oil could reach $200 per barrel if additional energy facilities are hit.
Mr Newman said: "What is concerning for the UK is that European oil prices, which were lagging behind the Middle East and Asia, are now aggressively catching up and there is a long way to go for prices just to align with the rest of the world."
Diesel set to breach £2 a litre as energy trader warns of price surge
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He said the disruption to global energy markets could persist for an extended period.
"After the latest hits, we are materially disrupted for oil and gas supply for at least the rest of the year," he said.
"In previous crises the damage was quick and volatility in markets high, but all oil professionals will tell you this is materially worse than anything they have ever seen.
"Forecasts for normalising supply are easily in the six months to a year, at best."
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Policymakers held interest rates at 3.75 per cent as they seek to contain rising price pressures
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Industry analysts expect supply chains to remain under pressure into 2027. Fuel prices in the UK have already risen sharply since the conflict began.
Diesel has increased by more than 20p per litre to an average of £1.63, while petrol has risen by nearly 10p to £1.43, according to the RAC.
Data from the Government’s Fuel Finder shows some motorway service stations are already charging close to £2 per litre for diesel. The sustained increase in pump prices is expected to add pressure on Rachel Reeves ahead of a planned fuel duty rise.
The Chancellor is set to increase fuel duty by 5p per litre from September, marking the first rise since 2011. The Bank of England said higher fuel costs are likely to push inflation to 3.5 per cent.
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