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Oil Slides After USIran Truce, but Pump Prices Stay High

A fragile truce has not restored normal shipping through the Strait of Hormuz, delaying any fall in forecourt prices.

Overview

  • Brent crude, after a two‑week truce was announced Wednesday between the US and Iran, fell about 13% to roughly $94–$95 a barrel before edging back near $97 on Thursday.
  • UK pump prices remain elevated with diesel averaging about 190–191p a litre and petrol near 157–158p, and analysts say it could take weeks or even months for cheaper crude to filter through.
  • Shipping data show tankers still skirting the Strait of Hormuz despite the ceasefire, with Kpler tracking only a handful of vessels transiting and logistics experts warning conditions are far from normal.
  • South Africa’s energy data point to large May under‑recoveries—roughly R3.52–R3.93/litre for petrol, R11.50–R11.55 for diesel, and about R9.12 for illuminating paraffin—prompting union calls to extend relief to paraffin‑reliant low‑income households.
  • RAC Foundation estimates suggest the UK Treasury has gained an extra £100m–£170m in VAT from higher pump prices, sharpening debate over temporary tax relief as households, charities, and small firms absorb higher fuel costs.