Motorists in the United States are facing steeper increases in gasoline prices following the Iran conflict compared to their counterparts in the United Kingdom, as per recent data analysis. According to JPMorgan, American drivers are experiencing a 42% surge in petrol prices since the outbreak of the conflict on February 28, while British motorists are seeing a more moderate 19% rise.
Similar price hikes have been observed in most other G7 countries, with Canada witnessing a 24% increase in petrol prices, and France experiencing an 18% rise. However, diesel prices have soared by an alarming 48% on average in the US, surpassing all other developed nations.
The escalating fuel costs come amid a record low approval rating for President Donald Trump, with only 36% of Americans endorsing his job performance according to a Reuters/Ipsos poll. Rising concerns about the economic impact of the Iran conflict on living expenses have contributed to growing dissatisfaction among voters. Trump, who ran on an anti-inflation platform in 2024, assured voters that gasoline and oil prices will plummet swiftly once the war concludes.
Despite a temporary ceasefire, negotiations to reopen the crucial Strait of Hormuz oil route remain deadlocked. Trump expressed discontent with new proposals from Tehran, raising concerns about a potential resumption of hostilities when the ceasefire ends. Iranian military officials have cautioned that a return to conflict is probable if the US continues with its stringent demands.
In the UK, consumers are adapting their spending habits in response to the Iran conflict. Recent data from NatWest indicates a reduction in car trips and a decline in dining out expenditures. There has been a noticeable decrease in fuel purchases compared to a year ago, particularly among individuals over 65, suggesting a reduction in driving activity. Additionally, spending on dining out has decreased by approximately 3.5%, with more customers seeking value-for-money options.