FUEL prices could soar if the Middle East conflict escalates, drivers were warned last night.
The cost of oil climbed by around five per cent in just two days to $76 per barrel, as Israel vowed to retaliate against Iranian missile strikes.
One option open to the Israeli military is to hit Iran’s oil refineries — which despite western sanctions still supply many countries worldwide.
Analysts said a major escalation could take the oil price to $100 a barrel — driving up pump costs for motorists.
The warning comes at a time when petrol prices here have been falling.
They were down 6.5p a litre in September, putting £3.60 back into drivers’ pockets every time they fill up a 55-litre tank.
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Petrol is now 134.9p a litre and diesel 139.5p — marking one of the biggest price drops in 24 years, the RAC says.
A second threat to prices is the Budget on October 30.
Chancellor Rachel Reeves will have to decide whether to keep the current fuel duty freeze, as well as a 5p reduction brought in by the Tories.
The Sun’s Keep It Down campaign has saved drivers £90billion in tax over 14 years.
AA boss Edmund King said: “Global oil prices tend to increase with any geo-political uncertainty.
“The Government should avoid the temptation to hike fuel duty in the Budget as drivers and industry would face a double hit.”
Fawad Razaqzada, analyst at City Index, said: “The extent of Israel’s response to Iran will influence how much geopolitical risk markets factor in. Crude oil could rise another $5 in the next few days if we see further escalation in the conflict.”
Bjarne Schieldrop, chief commodities analyst at SEB, warned a major escalation in tensions could push oil prices to $100 a barrel.
And David Oxley, of Capital Economics, said such a rise could add 13p to the cost of a litre.
About a fifth of global oil comes from the Gulf region.