Prices had previously declined after the United States and Iran reached a preliminary agreement on a temporary ceasefire.
On July 23, 2026, oil prices rose by more than 6%, as the conflict between the United States and Iran entered its 11th consecutive day.
The latest spike came after Houthi fighters in Yemen launched attacks on oil tankers in the Red Sea, disrupting a key shipping route used to transport petroleum products to Asia and other global markets.
Natural gas prices have also continued to rise over the past month.
Oil prices had begun falling after the temporary ceasefire agreement between Washington and Tehran, returning to levels seen before the United States and Israel launched military operations against Iran on February 28.
However, the ceasefire quickly collapsed. Earlier this week, U.S. Secretary of State Marco Rubio said Iranian officials “were not prepared to reach an agreement.”
The ongoing conflict has pushed up energy prices across many countries, including the United Kingdom and the United States, contributing to higher inflation and increasing the cost of goods and essential services.
While motorists are expected to feel the immediate impact through higher fuel prices, households are also likely to face rising costs for everyday items, including food, as businesses pass on higher transportation expenses to consumers.
