UK fuel sales surge amid Iran conflict uncertainty. Motorists rushed to petrol pumps in early March following the start of the Iran war on February 28, driving fuel sales up 6.1% for the month. This spike boosted overall retail sales to 0.7%, exceeding economist expectations of just 0.1% growth. The fuel-driven surge marked the largest monthly increase since January 2016, excluding the pandemic period. However, broader consumer sentiment weakened significantly, with the GfK index falling to its lowest level since October 2023. Food sales declined 0.8% monthly, the steepest drop since August. Major retailers including Tesco and Sainsbury's report stable consumer behavior so far, but uncertainty around geopolitical tensions is clouding business outlooks and threatening profit margins across the sector.
