What could US-Iran peace deal mean for UK household costs?

Around the world, markets reacted with relief this week to news that Donald Trump had signed a draft peace deal with Iran that promised to reopen flows of oil and gas from the Gulf to global buyers. There are already signs the truce could unravel, with Friday’s peace talks in Switzerland abruptly called off , but for now markets seem persuaded that commercial vessel traffic through the key waterway can start returning to normal. Europe’s gas prices have fallen, too, from more than €61 per megawatt-hour in the first month of the war to between €40 to €42/MWh this week. Falling pump prices Fuel prices have already begun to tumble at forecourts across the UK. The price of a litre of petrol is down by 4.6p, from 159.7p on 28 May to 155.1p this week, according to the AA motoring group. Diesel is down 9.3p from 184.4p a litre to 175.1p in the same period, the group added, crediting the government’s price comparison scheme launched in February. “We have been surprised at the speed of the reductions and concluded that this is the influence of Fuel Finder: retailers seeing how much rivals are cutting their prices and, knowing that drivers can see the same information, having to respond,” says the AA’s Luke Bosdet. Fuel prices have begun to fall. …