Donald Trump had a clear message for any allies grumbling about the crisis in the Middle East. “Go get your own oil”, the president announced on his Truth Social platform yesterday, sending the price of oil up towards $110 per barrel.
Few British consumers will be thanking him for that advice. On Monday, the price of petrol climbed to a 28-month high at over 150 pence per litre. Meanwhile, sterling fell to its weakest level against the euro since the start of March and looks vulnerable heading into April, adding to the gloomy mood surrounding these shores at the moment.
We will be closed for the consecutive Easter bank holidays from Friday. So, if the value of the pound is creating some anxiety ahead of the break, there’s still time to lock in today’s rate to ensure you won’t pay more should things take another turn for the worse. You can secure your forward contract by calling 020 8003 4915.
As of this morning, it costs over £100 to fill up a family car with diesel. That’s not the kind of news story millions of motorists wanted ahead of Easter. But at least there were the first real signs of a willingness to negotiate from both the United States and Iran last night. President Trump predicted the war would end “within two weeks, maybe three”, while Iranian president Masoud Pezeshkian said that his nation would be willing to accept a peace deal, provided it guranteed against “the recurrence of aggression”. That news boosted the pound and the euro at the expense of the US dollar.
For now, the Middle East conflict is locked in a deadlock. Few ships are passing through the Strait of Hormuz, meaning those high prices at the pump might be here to stay.
The euro strengthened at sterling’s expense partly because it did not take as big a hit on inflation as had been expected. The eurozone’s combined inflation rate came in at 2.5% in March – far less than expected.
We’ll have to wait a little longer to get the first glimpse of how the UK is faring. If petrol prices and supermarket receipts are anything to go by, there is a good chance the pound could fall further as the clamour for higher interest rates grows.
