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Market brief
UK average today: 87.90p per litre

America's new sanctions on Iran landed softer than the oil market had feared, and there are fresh signs both sides want the war to end. Pakistan's army chief flew to Tehran this week carrying a proposal that includes easing sanctions if Iran comes to the table.

Oil fell to its lowest in a week on the news, with Brent crude, the oil that sets what UK refiners pay, down about 3% to $89 a barrel. Kerosene has followed it down: our price tracker puts the UK average at about 86ppl today, the fourth daily fall in a row. That makes a 1,000-litre fill roughly £860.

The gap with last year is still the bigger story. The same fill cost about £525 in late August 2025, so heating oil remains roughly 64% dearer than a year ago. Today's price is about 7ppl below the 93ppl peak reached at the end of July.

Two things decide where a fill goes from here. One is whether this week's peace proposal turns into actual talks, the other is whether Iran's oil keeps reaching buyers under the new sanctions.

26 August 2026 · updated daily · more on the news page
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UK Average 87.90p per litre
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Cheapest months: May–Sep Get alerts
Live average across Fueltool suppliers currently quoting, updated 26 Aug 2026
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Daily Market Brief

26 August 2026

America's new sanctions on Iran landed softer than the oil market had feared, and there are fresh signs both sides want the war to end. Pakistan's army chief flew to Tehran this week carrying a proposal that includes easing sanctions if Iran comes to the table.

Oil fell to its lowest in a week on the news, with Brent crude, the oil that sets what UK refiners pay, down about 3% to $89 a barrel. Kerosene has followed it down: our price tracker puts the UK average at about 86ppl today, the fourth daily fall in a row. That makes a 1,000-litre fill roughly £860.

The gap with last year is still the bigger story. The same fill cost about £525 in late August 2025, so heating oil remains roughly 64% dearer than a year ago. Today's price is about 7ppl below the 93ppl peak reached at the end of July.

Two things decide where a fill goes from here. One is whether this week's peace proposal turns into actual talks, the other is whether Iran's oil keeps reaching buyers under the new sanctions.

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