Key facts
- UK diesel prices hit a record 199.18p per litre, surpassing the previous high from June 2022.
- Brent crude oil prices rose above $96 per barrel following renewed uncertainty around US-Iran relations.
- The two-year UK gilt yield increased six basis points to 4.75%, and the 10-year yield rose five basis points to 5.4%.
- Chancellor John Healey pledged fiscal discipline ahead of his first budget, aiming to control borrowing and reduce long-term financial pressures.
The UK economy is facing increased pressure as diesel prices hit a record high of 199.18p per litre, surpassing the previous mark set in June 2022. This surge in fuel costs, attributed by the RAC to the UK's exposure to global events, comes amid broader geopolitical tensions. Brent crude oil prices also climbed above $96 per barrel after US President Donald Trump rejected a proposal concerning the Strait of Hormuz, adding to market uncertainty.
These energy price shocks are occurring as Chancellor John Healey prepares for his first Budget on October 28, pledging fiscal discipline. The two-year UK gilt yield rose six basis points to 4.75%, and the 10-year yield increased five basis points to 5.4%, nearing a 19-year high. Analysts suggest that the market is seeking fiscal clarity and credibility from the government.