Fuel costs rise by up to €3 per tank in just two weeks — the steepest increase so far in 2025. The recent escalation in tensions across the Middle East is already being felt at the petrol pump, with prices rising significantly across Spain. In the Valencia region, for instance — where many expats drive regularly, whether commuting to work, travelling along the coast, or running daily errands — filling up the tank has just become noticeably more expensive.
In the last two weeks alone, the average cost of petrol and diesel has increased by €2 to €3 per 50-litre tank — the sharpest jump since the beginning of the year.
Why the prices are rising
Following a series of military strikes involving Iran, Israel and the United States — including a high-profile US bombing of three Iranian nuclear facilities and Iran’s response, bombing Qatar and Iraq — the global oil market is reacting. As is often the case, geopolitical instability in oil-producing regions leads to speculation and concern over future supply, driving prices up.
Brent crude oil, the international benchmark, is now trading at around $77 per barrel. While this may not seem extreme at first glance, market fluctuations tied to conflict often translate rapidly into higher consumer prices at service stations.
What it means at the pump
According to Spain’s Ministry for the Ecological Transition, the average price of petrol in the Valencia region has risen by four cents over the past fortnight, reaching €1.506 per litre. That means filling a typical 50-litre tank now costs around €75.30, compared to €73.30 at the start of June.
Diesel users are facing even steeper hikes. The average cost per litre of diesel has risen from €1.354 to €1.410 — nearly six cents more. For a full tank, this translates to around €70.50, up from €67.70 just two weeks ago.
The biggest rise so far this year
This is the most significant fuel price rise seen in 2025, eclipsing the increases recorded in January, which were driven by heightened demand and uncertainty surrounding Chinese and Russian oil output.
At the heart of current fears is the strategic Strait of Hormuz — through which up to 30 per cent of global crude oil passes. Iran’s Parliament recently called for the closure of the strait in retaliation for US military action, raising concerns about further disruption to global supply chains.
A conflict with global consequences
On Monday, 23 June, Iran launched missile strikes targeting a US military base in Qatar and another American facility in Iraq, in what Iranian state media described as retaliation for US bombing raids on its nuclear infrastructure — reportedly authorised by former President Donald Trump. Explosions were heard in Doha, the capital of Qatar, marking a significant escalation.
Meanwhile, Israel has been bracing for further reprisals. Early in the morning, sirens sent residents scrambling to bomb shelters across the country. Iranian missiles hit residential areas in Tel Aviv, Nes Tziona and Haifa, leaving at least 86 people injured. Israeli airstrikes have continued across various locations in Iran.
What should expats in Spain expect?
While Spain is geographically distant from the conflict, residents — including British expats — are directly affected through rising living costs, particularly at the petrol station. If tensions in the Middle East continue or worsen, further price increases at the pump are highly likely.
For many, especially those who rely on their cars for daily life in Spain — where public transport in rural or coastal areas may be limited — these developments are more than just headlines from abroad; they are changes felt in the wallet.
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