The price of petrol has hit a new Iran War high at UK forecourts, adding to the financial pressure on millions of households about to embark on their annual holiday.

The RAC said that in “very unwelcome news for drivers” the average pump price had reached 160p a litre, reversing the drop down to 151p in early July that followed the announcement of a fragile Middle East ceasefire.

That is the highest level since November 2022, when prices were soaring in the aftermath of Russia’s full-scale invasion of Ukraine.

Diesel is up 14.5p to 179p but the price remains below the high of 192p seen back in April, the motoring body said.

“This means the cost of filling a family-size car with unleaded has gone up to £88, while a tank of diesel is £10 more,” said the RAC’s head of policy, Simon Williams. “The wholesale price of petrol eased very slightly this week but is not enough to make a difference at the pumps.”

Williams added that diesel “looks set to keep on rising” and would probably reach 185p a litre in the next few weeks, barring any major oil price reduction.

Fuel prices had declined after the US reached a memorandum of understanding in mid-June with Iran that appeared to be a precursor to peace talks. However, Donald Trump has in recent weeks appeared to tire of the peace efforts, and the US has struck Iran several times in recent days, prompting retaliation against US allies in the Middle East.

On Friday the Brent crude benchmark rose more than 1% to above $90 a barrel as Iran’s Revolutionary Guards said they had struck two tankers trying to pass through the strait of Hormuz under a US “air escort” and turned four other ships around.

The reversal in forecourt fortunes had come “at a very bad time” said Luke Bosdet, the AA spokesperson on pump prices. “AA polling indicates that 20.5 million UK drivers will take to the road in the third week of the holiday season. Among them, 2.2 million will cover 100 to 200 miles, 1.5 million will travel 200 to 300 miles and 1.3 million will go even further.”

However, Bosdet said that fuel prices appeared to be following wholesale prices more closely since May, when the government introduced a new fuel finder scheme that forces all petrol stations to report prices publicly.

In the past fuel retailers have faced accusations of “rocket and feather” pricing – when rapid price increases are followed by slower price cuts.

“In early May when wholesale costs shot up 3p to 6p for more than a fortnight, average petrol prices put on less than 2p,” Bosdet said. “Fuel Finder compliance started to be enforced at the beginning of the month and that likely had an impact.

“When costs plummeted from late May onwards, pump prices followed rapidly, which was unlike previous years of ‘rocket and feather’ pump pricing.”