Fuel to flames

Oil prices surge as Iran burns. Reeves vow amid inflation fear

- BY GRAHAM HISCOTT and LIZZY BUCHAN

FAMILIES are facing punishing fuel prices, soaring energy bills and rising inflation in the fallout from the Iran conflict.

Motorists were feeling the pain at the pumps yesterday as the AA said the nationwide average for unleaded reached 137.8p a litre, with diesel at 151.2p.

It came on a roller-coaster day when the price of oil rocketed to a four-year high of $119 a barrel amid fears of Donald Trump's war hitting global supplies. Prices later fell back to below $100 after G7 finance ministers including Chancellor Rachel Reeves said the group "stands ready" to release petroleum from emergency reserves. Reeves vowed to take the "necessary decisions" to shield cost-of-living ravaged families. She warned the crisis could push up inflation, with the impact dependent on how long the war rages on.

She told MPs: "The movements that we have already seen are likely to put an upward pressure on inflation in the coming months."

She said the energy system was more secure now than before Russia invaded Ukraine in 2022, meaning consumers are better protected.