Asda boss Allan Leighton warns UK drivers face petrol shortages as Iran blockade chokes Strait of Hormuz supply

It’s not every day that tensions thousands of miles away ripple so quickly into everyday life—but that’s exactly what’s happening now.

The ongoing standoff involving Donald Trump and Iran has begun to squeeze global oil supply, and drivers are starting to feel it.

At the heart of the issue is the Strait of Hormuz—a narrow but critical passage through which roughly a fifth of the world’s oil travels.

With Iran effectively blocking access, supply chains have tightened almost overnight.

Supermarkets Sound the Alarm

At Asda, one of Britain’s biggest fuel sellers, the warning signs are already flashing.

Executive chairman Allan Leighton didn’t mince words, describing supply at some forecourts as “tight.”

This doesn’t mean pumps are running dry—but it does mean occasional gaps while deliveries catch up.

Demand has surged as motorists react to rising prices, and even short delays in restocking are becoming noticeable.

Interestingly, the company insists operations are still broadly normal.

But the reality on the ground is a bit more fragile: when demand spikes and supply is strained, even a well-oiled system can wobble.

Prices Climb—and So Do Tempers

Fuel prices have now pushed past 150p per litre, the highest level seen in nearly two years.

And that’s not just a number—it’s a psychological threshold that tends to trigger panic buying and frustration.

Since the conflict began, petrol prices have jumped by around 17p per litre, while diesel has surged by as much as 30p.

Collectively, that’s costing UK drivers hundreds of millions more.

For many, it feels like a repeat of past fuel crises—only this time, it’s unfolding against an already painful cost-of-living backdrop.

“Don’t Panic,” Say Industry Leaders

Despite the headlines, industry figures are urging calm.

Representatives from fuel trade bodies have stressed that supply across the UK is still flowing.

Their message is simple: don’t change your habits.

Panic buying, they warn, is more likely to create shortages than solve them.

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It’s a familiar pattern—fear drives demand, demand strains supply, and the situation worsens.

Political Firestorm Over Fuel Taxes

As prices climb, so does the political heat.

Chancellor Rachel Reeves has come under heavy criticism, with business leaders accusing the government of quietly benefiting from the crisis.

Because VAT is charged as a percentage, higher fuel prices mean higher tax revenues.

Critics argue that while households struggle, the Treasury’s share grows.

Leighton and others have gone further, accusing ministers of deflecting blame onto retailers rather than addressing the tax burden itself.

Opposition voices, including Kemi Badenoch, have echoed those concerns, warning that the government must not appear to profit from global instability.

Life on the Forecourt Frontline

Away from boardrooms and Westminster debates, the pressure is most visible at local petrol stations.

Independent operators say they’re being squeezed from all sides—higher wholesale prices, falling customer numbers, and increasingly hostile customers.

Some report transactions dropping sharply as drivers cut back.

Others say staff are facing verbal abuse from frustrated motorists who assume price hikes are driven by greed.

But the margins tell a different story.

Many forecourts make just a few pence per litre, meaning most of the increase goes elsewhere—primarily to suppliers and taxes.

Businesses Feel the Squeeze

The knock-on effects are spreading fast.

Industries that rely heavily on fuel—transport, logistics, and taxis—are already taking action.

Taxi firms have raised fares. Delivery companies are adding emergency fuel surcharges.

Haulage operators are absorbing thousands in extra weekly costs—or passing them on where they can.

For some, it’s a tipping point. Years of tight margins mean there’s little room left to absorb shocks like this.

Impact and Consequences

The consequences stretch far beyond the forecourt:

• Households face rising travel costs, squeezing already tight budgets
• Small businesses risk losing customers as prices climb
• Supply chains become more expensive, pushing up the cost of goods
• Workers in customer-facing roles face increased stress and abuse

In short, a geopolitical conflict is translating into everyday financial strain.

What’s Next?

Right now, much depends on whether tensions ease in the Middle East.

If the Strait of Hormuz remains restricted, supply will stay tight—and prices could climb even higher.

There are growing calls for the UK government to step in, possibly by scrapping a planned fuel duty increase or cutting VAT.

Whether that happens remains to be seen.

Meanwhile, businesses are bracing for further disruption, and many are preparing contingency plans in case the situation worsens.

Summary

A distant conflict has triggered a very real, very local problem.

Fuel supplies aren’t collapsing—but they are under pressure.

Prices are rising, tempers are fraying, and the political debate is heating up just as fast as the pumps.

For now, the system is holding—but only just.

Bulleted Takeaways

• Fuel supply in the UK is tight but not collapsing
• The Strait of Hormuz blockade is a major global factor
• Prices have surged past 150p per litre, with diesel hit hardest
• Retailers deny profiteering, pointing instead to tax structures
• Businesses are introducing surcharges and price increases
• Staff at petrol stations are facing rising abuse from customers
• Government action on fuel duty and VAT could be a key turning point