The average price of petrol in the UK has reached 160p a litre, its highest level since the Iran war began on 28 February, according to figures from the RAC.

The motoring group puts petrol at 159.97p a litre and diesel at 178.97p. Diesel remains below its 15 April peak of 191.54p a litre, set as pump prices climbed to their highest level in more than two years.

Pump prices fell after the US and Iran agreed a framework deal in June to end the conflict. In early July, the RAC said, average petrol sank to a low of 150.59p a litre and diesel to 164.52p. Both have risen since the collapse of the peace talks.

Simon Williams, head of policy at the RAC, said the price of diesel was likely to reach 185p a litre “in the next few weeks, barring any major oil price reduction”.

The price of fuel tends to track the wholesale price of oil, and analysts say every $10 (£7.44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre. Because transporting oil is a slow process, wholesale price movements take about a fortnight to show at the pump.

Brent crude, the global benchmark, was about $70 a barrel before the conflict and peaked above $120 as the fighting disrupted oil supplies across the Middle East. It fell back to near $70 in early July after the framework deal was signed, climbed above $100 when the talks collapsed, and now trades at around $90.

Generally speaking, news of further conflict has driven the price up, while hopes of an end to the war have pushed it down.

Despite the rises, petrol and diesel remain below the levels reached in the summer of 2022 following Russia’s invasion of Ukraine, when petrol hit 191.5p a litre and diesel 199p.

The conflict has effectively closed the Strait of Hormuz, through which about 20 per cent of the world’s oil and liquefied natural gas normally passes. Experts warn that even if a deal is agreed to reopen the strait, it will take time before normal levels of shipping resume, and the impact of the war could continue to affect the global economy for months.

The UK is heavily reliant on oil and gas imports, with the majority coming from the US and Norway, and pays the price set on the global market. Although the UK produces some oil in the North Sea, most of it is exported for refining elsewhere.

Fuel retailers have denied accusations of price gouging during the conflict. The official markets regulator said it had “not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis”.

A government scheme called Fuel Finder lets drivers compare the cost of fuel at petrol stations across the UK. Luke Bosdet, head of policy at the AA, said the group had been surprised at the speed at which prices had fallen and put it down to the scheme.

On 20 May, the then prime minister Sir Keir Starmer said a planned 5p increase in fuel duty due in September would be postponed until 31 December because of the conflict.

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

According to the RICS chartered surveyors are anticipating rising rents

Occupier demand for commercial property in Wales was muted in the second quarter of the year according to the latest Royal Institution of Chartered Surveyors (RICS) which also shows optimism for rents in the months ahead.

A net balance of minus 7% of Welsh respondents reported a fall in overall occupier demand through the first quarter of the year. Looking at the subsectors, a net balance of minus 8% of respondents reported a fall in occupier demand for industrial space.

A net balance of -14% of Welsh surveyors reported a fall in occupier demand for retail space, which although remains in negative territory, is up from the survey previous, and for the second consecutive quarter, occupier demand for office space fell flat.

Looking ahead, though, there appears to be some improvement in sentiment. Surveyors in Wales expect rents to rise over the next three months, with a net balance of 13% of respondents anticipating that rents will increase. Both office and industrial space are expected to see rises in rents, however rents in retail space are expected to fall over the next three months.

On the investor side of the market, demand fell flat at the all sector level in Q2. There was a fall in demand from investors for office space, however investor demand for both industrial and retail space rose through the second quarter of this year.

When it comes to capital values, respondents in Wales are more optimistic for the industrial sector which is expected to see its capital values rise over the next three month period. However capital values in both retail and office space are expected to decline. This points to an overall flat picture.

Chris Sutton of Sutton Consulting in Cardiff said: “There is a lack of available grade A floorspace across both office and industrial markets. Developers face challenges including funding, planning delays and increased construction costs.

“There are, however, high quality occupier enquiries in the Cardiff office market, and a recognition that rents will need to rise to improve viability. In the industrial sector, developer Indurent has announced the final two phases of its landmark scheme in Newport, with quoting rents of £10-£12 per sq ft.”

On theUK picture head of market research and analytics for the RICS, Tarrant Parsons, said: “The UK commercial property market appears to have weathered the initial shock from the escalation in geopolitical tensions earlier in the year reasonably well, with the tone from respondents this quarter noticeably more settled than in Q1.

“Occupier fundamentals continue to hold up, and there is tentative evidence that the sharp tightening in credit conditions seen earlier in the year is starting to unwind. That said, the pace of the recovery in investor sentiment remains modest, and respondents continue to flag caution given the wider macroeconomic backdrop.“As we move through the second half of the year, the trajectory of interest rates, alongside developments on the international stage, will remain critical to whether or not positive momentum is allowed to build.”

The York and North Yorkshire Combined Authority has been designated an Established Mayoral Strategic Authority, with confirmation received on Friday 31 July 2026, making it the first rural mayoral area in England to hold the status.

The designation gives the Combined Authority, led by Mayor David Skaith, access to further devolved powers, increased flexibility over funding and the ability to request additional powers from government, the authority said.

Eleven areas now hold Established Mayoral Strategic Authority status, including Greater Manchester, the West Midlands, South Yorkshire, the North East, West Yorkshire, the East Midlands and the West of England.

Under criteria published by the Ministry of Housing, Communities and Local Government, authorities seeking the designation must have had a directly elected mayor in place for at least 18 months, hold a published Local Assurance Framework and submit evidence of a track record of managing major programmes. The status is provided for by the English Devolution and Community Empowerment Act, which received Royal Assent in April 2026.

York and North Yorkshire Combined Authority formed in February 2024. The authority said the designation reflects growing confidence from government in its ability to deliver change for the region.

David Skaith, Mayor of York and North Yorkshire, said: “This is a major milestone and clear evidence of the progress we’ve made as a county and a Combined Authority in a short space of time.

“Now, with Established Status, we will have access to greater powers and funding, allowing us to go even further and faster to address some of the structural challenges holding our county back.

“This will help us fully realise the benefits of devolution and ensure decisions about our county are made by our county, for our county, and in our county by those who know it best.”

Councillor Claire Douglas, leader of City of York Council, said the Combined Authority had attracted funding since 2024 for schemes including affordable homes, jobs, highways and active travel. Investment in the region has included allocations from a £7 million net zero fund agreed as part of the area’s devolution deal.

“Working collectively, we will be able to unlock significantly more funding to drive economic growth, develop more affordable homes, and better connect the city and neighbouring places with sustainable and accessible transport,” she said.

North Yorkshire Council’s leader, Councillor Carl Les, said: “Established Status is a recognition of all the hard work that has been done and will be vital in driving economic growth to improve lives and opportunities for our residents and businesses across the county.”

The designation comes as devolution moves up the political agenda. More than a quarter of England’s population still lives outside a Mayoral Strategic Authority, according to think tank IPPR North, which has urged the government to complete the devolution map by the end of this parliament.

In June, Rachel Reeves told the British Chambers of Commerce annual conference that fiscal devolution was her “unfinished business”, with consultations under way on devolving revenues from income, business and land taxes to local leaders.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

But two senior envoys who attended said there was no direct response from the ministers gathered in Brussels when Blinken said: “We must push back on China together and show strength in unity.”

Their reticence is partly due to an unwillingness to commit to anything until Washington spells out more fully its China policy under President Joe Biden.

But the ministers were also cautious because the EU is looking for a strategic balance in relations with Beijing and Washington that ensures the bloc is not so closely allied with one of the world’s two big powers that it alienates the other.

The EU also hopes to have enough independence from Washington and Beijing to be able on its own to deepen ties with countries in the Indo-Pacific region such as India, Japan and Australia, EU officials said.

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In a new departure for the EU, they said, the bloc hopes to agree a plan next month that involves a larger and more assertive security presence in the Indo-Pacific, and more development aid, trade and diplomacy.
“We are charting a third way between Washington and Beijing,” an EU envoy in Asia said.Another EU official in Asia expressed concern that the United States had “a hawkish agenda against China, which is not our agenda”.

‘EUROPE ROADSHOW’
Last month’s videoconference was part of an attempt under Biden to rebuild alliances neglected by former U.S. President Donald Trump, who had an antagonistic relationship with both the EU and China.

The White House has embarked on a “Europe roadshow”, a senior U.S. official said, and is in daily contact with European governments about China’s rising power, in “a sustained effort for … a high degree of coordination and cooperation in a number of areas.”

In a sign that the U.S. push on China is having an impact, Germany plans to send a frigate in August to Asia and across the South China Sea, where Beijing has military outposts on artificial islands, senior government officials told Reuters.

The EU is also set to sanction four Chinese officials and one entity – with travel bans and asset freezes – on March 22 over human rights abuses in China’s Uighur Muslim minority, diplomats said.

In a further sign, when Chinese President Xi Jinping chaired a video summit with central and eastern European countries last month, six EU member states – Bulgaria, Estonia, Latvia, Lithuania, Romania and Slovenia – sent ministers rather than heads of state.

But there is still distrust in Brussels of Washington’s approach to China, even if attitudes in Europe have hardened against China over Beijing’s crackdown in Hong Kong, treatment of Uighur Muslims and the COVID-19 pandemic, first identified in China.

The United States says China is an authoritarian country that has embarked on a military modernisation that threatens the West, and has sought to weaken telecommunications equipment maker Huawei, which it sees as a national security threat.

The U.S.-led NATO military alliance is also beginning to focus on China, but Biden’s administration is still reviewing policy.

“We ask what their China strategy is and they say they still don’t have one,” the EU official in Asia said.

French President Emmanuel Macron highlighted concerns in some EU states last month by saying that uniting against China would create “the highest possible” potential for conflict.

‘NO ALTERNATIVE’
But the EU is hungry for new trade and sees the Indo-Pacific as offering huge potential.

The EU has a trade deal with Japan and is negotiating one with Australia. Diplomats say countries in the Indo-Pacific want the EU to be more active in the region to keep trade free and open, and to ensure they are not left facing a straight choice between Beijing and Washington.

France committed to closer ties with allies such as Australia and India with an Indo-Pacific strategy in 2018, followed by the Netherlands, which also has its own strategy, and Germany’s looser set of “guidelines”.

The EU strategy, if agreed, could involve putting more EU military experts in EU diplomatic missions in Asia, training coast guards and sending more EU military personnel to serve on Australian ships patrolling in the Indian Ocean, diplomats said.

It is unclear how much Germany, which has close business ties to China, will commit to any new strategy. German government officials say the EU cannot afford to alienate Beijing despite labelling China a “systemic rival” in 2019.

But French Foreign Minister Jean-Yves Le Drian will travel to India in April to develop the EU’s Indo-Pacific strategy, and the EU aims to hold a summit with India this year.

France, which has 1.8 million citizens in Pacific overseas territories, has about 4,000 troops in the region, plus navy ships and patrol boats.

“The Indo-Pacific is the cornerstone of Europe’s geopolitical path,” said a French diplomat. “There’s no alternative.”

BP has put its North Sea oil and gas business up for sale, the company announced on Friday, in a move that would end 60 years of production in the region by the group.

The business has five production hubs, two in the central North Sea and three west of Shetland, and employs about 1,100 people. It produced 117,000 barrels of oil equivalent per day in 2025, against BP’s total daily production of 2.3 million barrels.

The decision follows a review of BP’s operations as it seeks to slim down the group. A sale could bring in £2bn to BP. The Financial Times reported last month that the company had been in talks with Ithaca Energy to sell the assets for around that amount, although the talks fell through.

Chief executive Meg O’Neill, who took the helm in April, said earlier this year there was “untapped potential” in the North Sea. Announcing Friday’s decision, she said: “As we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company.

“It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognizes that value.”

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“The UK has been our home for more than 100 years and will continue to play an important role in our future,” O’Neill said. “We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.”

BP employs around 13,960 people in the UK and said its global headquarters will remain in the country. The company said it remained committed to operating the business safely and reliably throughout the sale process.

The announcement comes amid political debate over the future of North Sea drilling. In its 2024 general election manifesto, Labour said it would not issue new licences for drilling but would honour existing ones. Earlier this week, Prime Minister Andy Burnham said he had told US President Donald Trump he would take a “pragmatic approach” to North Sea oil and gas. “There is a resource there. When people are struggling – you can’t ignore that,” Burnham said.

Labour’s deputy leader Lucy Powell has previously told the BBC that Burnham would stick to the party’s manifesto commitments, but that there would be a “change of emphasis” on North Sea oil and gas.

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Oil and gas companies have also criticised the Energy Profits Levy, the windfall tax on North Sea producers, which they argue means the region has lost some of its appeal in recent years.

The Scottish government’s energy minister, Stephen Gethins, said the decision would cause uncertainty for workers. “Scotland’s future prosperity – and our contribution to energy security – are reliant on North Sea energy production and, crucially, the skills and experience of that workforce,” he said.

Gethins added that reserved policies, such as the Energy Profits Levy, were driving an accelerated decline of North Sea oil and gas before renewables were fully ready to meet energy needs.

The Scottish Conservatives’ energy spokesman, Andrew Bowie MP, called on the Labour government at Westminster to approve the Jackdaw and Rosebank offshore sites, cancel plans to ban new licences in the North Sea and scrap the Energy Profits Levy.

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Reform MSP Duncan Massey said 1,100 workers faced uncertainty with the sale, adding that politicians should not put ideology ahead of jobs and economic reality.

The Scottish Greens said 80 per cent of the oil from the North Sea was shipped overseas and that it was therefore “doing very little to improve our energy security”.

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Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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