Record monthly petrol and diesel price increases in March<\/p>\n
It\u2019s not just mortgages that are going up<\/a>, either.<\/p>\n UK petrol and diesel prices jumped by a record amount in March, as the oil supply shock caused by the Iran war quickly rippled to forecourts.<\/p>\n New data from the RAC shows that the average price of a litre of unleaded petrol rose by 20p from 132.83p on 1 March to 152.83p by the end of the month. That surpasses the previous all-time biggest monthly jump of 16.6p recorded in June 2022, following Russia\u2019s invasion of Ukraine.<\/p>\n Diesel prices have risen even more sharply \u2013 up 40p in March to an average of 182.77p from 142.38p. That\u2019s almost twice as large as the previous record rise of 22p recorded in March 2022.<\/p>\n RAC head of policy Simon Williams says March\u2019s price rises were \u2018unprecedented\u2019, adding:<\/p>\n double quotation mark\u201cThe increases drivers have had to endure in March 2026 far exceed those seen in the early days of the war in Ukraine.<\/p>\n \u201cWhile the monthly rise in a litre of petrol is bad enough, the jump in the cost of diesel is even harder to swallow at 40p a litre.<\/p>\n \u201cWith long-term RAC research showing eight-in-10 people are dependent on their vehicles, these costs must really be taking their toll on households as well as businesses.\u201d<\/p>\n However, these record increases are in nominal terms; in real terms, prices rose by more during the oil shock of 1973, the RAC point out.<\/p>\n And despite these price rises, average fuel prices are still below the all-time highs of summer 2022 when petrol peaked at 191.5p per litre and diesel at 199.0p per litre.<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.19 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n UK gas prices rise too<\/p>\n UK gas prices have risen this morning, as traders anticipate further disruption to supplies from the Middle East.<\/p>\n The month-ahead UK wholesale gas contract is up 3.5% at 124.6p a therm.<\/p>\n Before the Iran war began, this contract was trading around 77p a therm. However, it\u2019s still below its recent peak of above 150p set last month.<\/p>\n Susannah Streeter, chief investment strategist at Wealth Club, says:<\/p>\n double quotation mark\u201cHigh hopes have been replaced by fresh frissons of fear about the duration of the war with Iran after President Trump\u2019s bellicose speech, which gave no indication the conflict was very close to ending. Instead, the military looks set to intensify attacks, which is likely to provoke retaliatory strikes by Iran and risks destabilising the region further.<\/p>\n The big concern will be about further damage to energy facilities across the Gulf. The repair work is already likely to take years, and further destruction is likely to keep oil and gas prices elevated for even longer. A barrel of Brent crude has jumped sharply, reflecting these worries, and is trading back up at $107 a barrel. European and UK gas futures have also jumped by more than 5% and are set to stay highly volatile. Around a fifth of global LNG supplies are usually transported through the Strait of Hormuz, but it remains largely impassable, and it\u2019s becoming clear that there is going to be no easy exit from this war, with a lack of planning increasingly evident.<\/p>\n Share<\/a>IEA, IMF and World Bank team up to tackle crisis<\/p>\n Overnight, three major institutions have warned that the Middle East crisis is hitting global supply chains, causing market volatility and threatening growth.<\/p>\n In a joint statement, the heads of the International Energy Agency, the International Monetary Fund, and World Bank Group said the impact of the war would be \u2018substantial, global and highly asymmetric, disproportionately affecting energy importers\u2019.<\/p>\n The IEA, IMF and World Bank are now going to create a coordination group to \u201cnavigate this crisis\u201d.<\/p>\n This group will assess the severity of impacts across countries and regions, coordinate a response mechanism, and mobilize relevant stakeholders.<\/p>\n They warn:<\/p>\n double quotation markThe Middle East war has caused major disruptions to lives and livelihoods in the region and triggered one of the largest supply shortages in global energy market history.<\/p>\n The impact is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries. It is already transmitted through higher oil, gas and fertilizers prices, and is triggering concerns about food prices as well. Global supply chains\u2014including of helium, phosphate, aluminum, and other commodities\u2014are affected, as is tourism due to flight disruptions at key Gulf hubs.<\/p>\n The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth.<\/p>\n Share<\/a><\/p>\n This chart from estate agency Knight Frank shows how the markets are broadly pricing in two rate rises from the Bank of England this year.<\/p>\n Photograph: Knight Frank<\/p>\n They add:<\/p>\n double quotation markFor now, the outlook in the Middle East remains confused. Financial markets this week were tentatively factoring in a US withdrawal from the region, irrespective of whether it has re-opened the Strait of Hormuz.<\/p>\n Donald Trump\u2019s television address on Wednesday didn\u2019t confirm the withdrawal to the extent some had expected, but neither did he say anything particularly new.<\/p>\n Share<\/a><\/p>\n City investors are now fully pricing in two increases in UK interest rates by December, due to the Middle East crisis.<\/p>\n The money markets are now indicating UK Bank rate will have risen to over 4.25% by the end of the year, implying two quarter-point increases in rates, up from 3.75% at present.<\/p>\n Yesterday the markets had only priced in around 44 basis points of increases, meaning two rises weren\u2019t fully priced in.<\/p>\n Share<\/a>UK gilt yields rise<\/p>\n UK government borrowing costs are on the rise again, amid the disappointment over Trump\u2019s speech last night.<\/p>\n With bond prices falling, the yield (or interest rate) on UK gilts is going up again.<\/p>\n Ten-year gilt yields are up 4 basis points (0.04 percentage points) back to 4.886%.<\/p>\n Thirty-year gilt yields are up 3bps.<\/p>\n And two-year bond yields have risen by more \u2013 gaining 6bps to 4.36%, reflecting increased fears of an inflation spike from higher energy costs.<\/p>\n Share<\/a>Trump speech had “opposite effect” to what investors hoped for<\/p>\n Global markets have taken a step backwards overnight after Donald Trump\u2019s live address, with the mood shifting sharply from the cautious optimism that had been building in recent days.<\/p>\n So explains Matt Britzman, senior equity analyst at Hargreaves Lansdown, who adds:<\/p>\n double quotation markFrom a market perspective at least, the speech appeared to have the opposite effect investors were hoping for, with oil pushing higher, bond yields climbing, and equity markets falling back. Rather than offering any fresh clues on a path toward de-escalation, Trump largely repeated a familiar set of talking points that traders have already digested across social media in recent weeks.<\/p>\n The result is a classic risk-off move across asset classes as hopes for further progress toward de-escalation gave way to renewed uncertainty. The FTSE 100 has opened lower, US futures suggest an unwind of yesterday\u2019s optimism, and rate hike expectations are back on the rise. For investors, this is another reminder of how sentiment can shift quickly, and of how hard it is to time entry and exit points. Being diversified and sticking to a longer-term plan is a much more sensible strategy.<\/p>\n Oil markets are higher once more, with Brent and [US] crude now back above $100, as traders began pricing in the growing risk of disruption to energy infrastructure across the Gulf, amid lingering uncertainty around key shipping routes like the Strait of Hormuz. Comments suggesting military operations in the region could extend for several more weeks have dampened hopes of a near-term resolution, adding a fresh geopolitical risk premium to oil prices. That\u2019s come despite a sizeable 5.5 million barrel build in US crude inventories last week, which would typically have weighed on prices but has instead been brushed aside in the current environment.<\/p>\n Share<\/a>European stock markets fall as investors price in ‘economic catastrophe’<\/p>\n Stock markets are falling across Europe, as investors react to Donald Trump\u2019s special address last night, in which he vowed to send Iran \u201cback to the stone ages\u201d.<\/p>\n Frankfurt\u2019s stock market has started the day with a bump; Germany\u2019s DAX share index is down 1.5%.<\/p>\n France\u2019s CAC 40 has dropped by 1.35%, and Italy\u2019s FTSE Mib is down 1.2%.<\/p>\n London\u2019s FTSE 100 index is showing a smaller fall<\/a> \u2013 now down 0.6%, as oil company shares rally.<\/p>\n Chris Beauchamp, chief analyst at IG, says markets are now anticipating longer delays to oil supplies from the Gulf, as Trump didn\u2019t provide guidance for how the conflict may end.<\/p>\n double quotation mark\u201cIn what might be the most dramatic April Fools\u2019 of recent years, Donald Trump did nothing of what was expected in his speech. Instead of \u2018no more war\u2019, we got \u2018no, more war!\u2019, with heavier strikes expected and a fresh warning of attacks on power plants.<\/p>\n This leaves markets back where they were last week, and now we have to price in hundreds of millions of barrels of oil that aren\u2019t coming out any time soon. The gloomy predictions of last week would have been perhaps misplaced if Trump had signalled a quick end, but now markets are back to pricing in economic catastrophe.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.03 EDT<\/p>\n Oil company shares rise<\/p>\n The UK stock market is being propped up by oil producers.<\/p>\n BP (+2.9%) and Shell (+2%) are leading the risers on the FTSE 100 share index, following the 6% jump in Brent crude prices this morning.<\/p>\n Share<\/a>FTSE 100 falls as global sell-off reaches London<\/p>\n The London stock market has joined the global sell-off, as hopes of a quick end to the Middle East conflict fade.<\/p>\n The FTSE 100 index of blue-chip shares has dropped by 0.68%, or 70 points, at the open to trade around 10,297 points.<\/p>\n Yesterday, the \u2018Footsie\u2019 had jumped by 188 points, its best day in almost a year, but the optimism that pushed stocks higher has retreated after Donald Trump vowed to hit Iran \u2018extremely hard\u2019.<\/p>\n Precious metal miners Fresnillo (-5.7%) and Endeavour (-5.3%) are the top fallers on the FTSE 100, as traders react to a 3% drop in the gold price today.<\/p>\n They\u2019re followed by housebuilder Barratt Redrow (-3.8%) and copper producer Antofagasta (-3.6%), who would both suffer weaker demand if the Iran conflict keeps interest rates high, hurting borrowers and global economic growth.<\/p>\n Jim Reid, market strategist at Deutsche Bank, says Trump\u2019s primetime address has dented market optimism:<\/p>\n double quotation markAfter rallying sharply over the previous two sessions, market sentiment has deteriorated overnight after Trump\u2019s much anticipated address last night delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran. The US President claimed that the operation against Iran was \u201cvery close\u201d to completion but also said the US \u201cwill hit Iran extremely hard over the next 2-3 weeks\u201d. Trump again raised the threat to hit Iran\u2019s power plants if there is no negotiated deal and reiterated the view that shipping via the Strait of Hormuz was other countries\u2019 problem. So while Trump sounded flexible on remaining war aims, for instance claiming that Iran is \u201cno longer a threat\u201d, there was no signal of the US seeking an imminent offramp out of the war.<\/p>\n In response, markets have reversed the continued positive momentum they\u2019d seen yesterday amid rising hopes that an end to the conflict might be coming into view.<\/p>\n Share<\/a>Oven Pride household goods group McBride raising prices to recover Iran war costs<\/p>\n UK cleaning products maker McBride is putting up its prices, to pass on increased costs from the Iran war.<\/p>\n McBride, which makes the Oven Pride, Clean n Fresh and Actiff cleaning ranges, told the City this morning it is implementing \u201ctemporary\u201d price hikes to cover increased costs from the conflict.<\/p>\n McBride explained that its chemical and packaging suppliers have begin raising their prices to recover the cost of more expensive raw materials, and higher energy costs.<\/p>\n The first signs of possible shortages in supply chains around the world are beginning to emerge, it warns, adding:<\/p>\n double quotation markAs a result, the Group will see elevated input costs in April and expects further increases in the near future. Consequently, the Group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher, beyond our control, cost impacts from the Middle East conflict.<\/p>\n Share<\/a>Clampdown on ‘subscription traps’ could help in cost of living squeeze<\/p>\n With mortgage rates and fuel costs climbing, Britons don\u2019t also need to be wasting cash on unwanted subscriptions.<\/p>\n And new government plans, which aim to better protect consumers from \u201csubscription traps\u201d, could help.<\/p>\n The rules, which could come into force early next year, will ensure consumers receive reminders before their free or discounted trials end, or when contracts of 12 months or more automatically renew.<\/p>\n The changes will also make it easier to cancel subscriptions, and create a a new 14-day cooling-off period for when a free or discounted trial concludes, or when a contract renews for a year or longer.<\/p>\n Business minister Kate Dearden has said that the Government\u2019s new rules for subscriptions will give consumers \u201cmore control of their hard-earned cash\u201d.<\/p>\n Speaking to Times Radio, she said:<\/p>\n double quotation mark\u201cI\u2019ve heard from so many people the impacts that unwanted subscriptions or subscriptions that you weren\u2019t aware of, the impact that can have on their finances.<\/p>\n \u201cSo we\u2019re making sure that people have more control of their hard-earned cash, that you are more aware of the subscriptions that you signed up to.<\/p>\n \u201cThese new rules that we\u2019re announcing today make sure that businesses have to inform you about when a free trial might come to an end.<\/p>\n \u201cThat\u2019s right at any point, but especially during a cost of living crisis, when people might want to re-look at their subscriptions.\u201d<\/p>\n Share<\/a><\/p>\n Nervous investors are, again, taking shelter in the US dollar.<\/p>\n The dollar, a classic safe-haven asset, has gained almost 0.5% against a basket of major currencies today.<\/p>\n This move has pushed the pound down by almost a cent to $1.321, reversing yesterday\u2019s gains.<\/p>\n Share<\/a>Brent crude jumps 6% after Trump speech<\/p>\n Oil is pushing higher too.<\/p>\n Brent crude, the international benchmark, has leapt by over 6% this morning to $107.63 a barrel \u2013 yesterday, hopes of de-escalation in the Middle East had pushed it below the $100\/barrel mark.<\/p>\n Our Middle East crisis blog is covering all the key events that may move the oil price further today:<\/p>\n Share<\/a>Asia-Pacific markets fall after Trump speech<\/p>\n Asia-Pacific stock markets are a sea of red after Donald Trump dented hopes of an early end to the Iran war.<\/p>\n All the major stock markets in the region have fallen, after the US president used his primetime address overnight to vow to hit Iran \u201cextremely hard\u201d over the coming weeks.<\/p>\n Hopes of an imminent end to the conflict are fading today, as Trump declared:<\/p>\n double quotation mark\u201cWe\u2019re going to hit them extremely hard over the next two to three weeks. We\u2019re going to bring them back to the Stone Ages where they belong.\u201d<\/p>\n Japan\u2019s Nikkei index has fallen by 2.4%, while China\u2019s CSI 300 index is 1.36% lower. South Korea\u2019s KOSPI (which has been particularly sensitive to the crisis) has tumbled by 4.8%.<\/p>\n After a couple of days where markets have struck a decidedly more positive tone, a degree of caution has once again crept into proceedings overnight, says Michael Brown, senior research strategist at brokerage Pepperstone, adding:<\/p>\n double quotation markPresident Trump\u2019s \u2018address to the nation\u2019 hasn\u2019t helped on this front, with market participants having wanted to hear a bit more than the President provided.<\/p>\n While Trump did note that the US is \u2018nearing completion\u2019 of its strategic objectives, and reiterated that those countries reliant on crude flows through Hormuz should be the ones to re-open it, Trump failed to give a definitive timeframe for ending the conflict, while also nothing that Iran will be hit \u2018very hard\u2019 over the next couple of weeks.<\/p>\n Share<\/a>Record monthly petrol and diesel price increases in March<\/p>\n It\u2019s not just mortgages that are going up<\/a>, either.<\/p>\n UK petrol and diesel prices jumped by a record amount in March, as the oil supply shock caused by the Iran war quickly rippled to forecourts.<\/p>\n New data from the RAC shows that the average price of a litre of unleaded petrol rose by 20p from 132.83p on 1 March to 152.83p by the end of the month. That surpasses the previous all-time biggest monthly jump of 16.6p recorded in June 2022, following Russia\u2019s invasion of Ukraine.<\/p>\n Diesel prices have risen even more sharply \u2013 up 40p in March to an average of 182.77p from 142.38p. That\u2019s almost twice as large as the previous record rise of 22p recorded in March 2022.<\/p>\n RAC head of policy Simon Williams says March\u2019s price rises were \u2018unprecedented\u2019, adding:<\/p>\n double quotation mark\u201cThe increases drivers have had to endure in March 2026 far exceed those seen in the early days of the war in Ukraine.<\/p>\n \u201cWhile the monthly rise in a litre of petrol is bad enough, the jump in the cost of diesel is even harder to swallow at 40p a litre.<\/p>\n \u201cWith long-term RAC research showing eight-in-10 people are dependent on their vehicles, these costs must really be taking their toll on households as well as businesses.\u201d<\/p>\n However, these record increases are in nominal terms; in real terms, prices rose by more during the oil shock of 1973, the RAC point out.<\/p>\n And despite these price rises, average fuel prices are still below the all-time highs of summer 2022 when petrol peaked at 191.5p per litre and diesel at 199.0p per litre.<\/p>\n