The increase in oil prices due to the escalation of the conflict between Israel and Iran has already had an impact at the gas pump. Compared to the previous week, fuel prices increased noticeably, as the ADAC announced on Wednesday. Diesel now costs an average of €1.589 per liter, 3.9 cents more than the previous week. Super E10 costs €1.692, or 2.4 cents more.
"The growing concern about the ongoing conflict between Israel and Iran and a further escalation is also reflected in the oil price," the automobile club explained. Given that the price of a barrel of North Sea Brent crude has risen by around ten dollars within a week, to almost 77 dollars, "fuel prices overall remain at a moderate level."
Israel launched a major attack on Iran on Friday night, bombing the country's nuclear facilities and military installations and killing numerous high-ranking military officers. Iran responded with retaliatory attacks and has since attacked Israel with missiles and drones.
The oil price is primarily driven by fears that the escalation could lead to a closure of the Strait of Hormuz. Blockades of the strait between Iran and the Arabian Peninsula "would severely disrupt oil supply routes," the ADAC also stated. "Moreover, around one-third of the world's oil supply is produced in the affected region."
The German Automobile Association advises drivers to fill up in the evening because prices are significantly lower then. Those who fill up in the evening, preferably between 7 p.m. and 8 p.m., pay an average of around 13 cents less per liter.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
