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Wed, 08 Apr 2026

Wed, 08 Apr 2026 Why fuel and food prices could still be affected for months

Analysts fear long-lasting economic damage from the US-Israel war with Iran has already been set in motion.

* The last month has seen significant disruptions to oil production and supplies, with ships blocked from passing through the Strait of Hormuz and facilities damaged in the Gulf.
* Analysts estimate it will take months to restart production and get supplies back to normal, even if a peace deal is reached.
* Drivers can expect only slight reductions in fuel costs at best, says RAC head of policy Simon Williams.
* A sustained lower price over several weeks is needed to meaningfully lower wholesale fuel costs.
* Jet fuel prices are roughly double their pre-war levels and passengers should expect higher ticket prices for months to come.
* Even if traffic through the Strait resumes now, it will take months for supplies to reach normal levels.
* The damage to gas infrastructure in Qatar will take years to rebuild, meaning supply constraints will continue.
* Wholesale gas prices are likely to stay elevated for some time, limiting how far the July price cap can fall.
* UK food inflation is expected to reach at least 9% before the end of the year.