Oil Prices Surge Past $112 as Iran Conflict Enters Second Month — What It Means for Your Wallet

The ongoing US-Israel military strikes against Iran, now entering their second month, have sent oil prices on a volatile ride — and your everyday expenses are feeling the heat.

Key Facts

• Oil prices have surged from $72 to $118 per barrel since strikes began on February 28, currently sitting around $112
• Petrol prices in the UK have topped 150p per litre ahead of the Easter break, according to the RAC
• Consumer confidence is dropping — a major UK survey shows growing doubt about economic prospects over the next year
• Trump’s statements continue to move markets — but traders are growing increasingly sceptical of his reassurances
• The Strait of Hormuz closure threat could affect prices of food, medicines, and smartphones worldwide
• Oil peaked at $118 on March 19 before settling near $112 by Friday

What This Means for You

Fuel costs are rising sharply. If you drive, expect to pay significantly more at the pump. Consider consolidating errands, using public transport where possible, and locking in fuel rewards through loyalty programmes.

Energy bills may follow. Higher oil prices typically cascade into natural gas and electricity costs. If your energy tariff is up for renewal, locking in a fixed rate now could save you money if prices keep climbing.

Grocery prices could increase. Rising transport and energy costs get passed on to consumers. Stocking up on non-perishable essentials before further price hikes is a sensible move.

Investments face uncertainty. Markets are volatile and reacting sharply to every geopolitical headline. If you’re invested, avoid panic selling — historically, markets recover after geopolitical shocks. Diversification across sectors and asset classes remains your best defence.

Build your emergency buffer. With consumer confidence falling and prices rising, having 3-6 months of expenses saved is more important than ever.

As investment manager Jonathan Raymond puts it: “Investors are trying to price genuine uncertainty. Markets can look skittish or confused, but what they’re really doing is managing event risk in real time, with oil sitting right at the centre of that.”

Sources: BBC News | BBC News – Asda Petrol | BBC News – Consumer Confidence