Headline: Rachel Reeves Warns US-Iran Conflict Could Push UK Inflation Higher

Why this matters: Rising oil prices linked to geopolitical conflict could increase household costs, affecting inflation, fuel prices, and borrowing rates.

Summary:

• Chancellor Rachel Reeves warned the US-Iran conflict may increase inflation in the UK.

• Oil prices rose above $100 per barrel after Iran closed the Strait of Hormuz shipping route.

• Reeves told MPs economic impacts depend on the conflict’s severity and duration.

• She said rising energy costs are likely to put upward pressure on inflation.

• The government plans to keep the energy price cap unchanged until the end of June.

• Ministers are exploring support for households using heating oil not covered by the price cap.

• The Competition and Markets Authority warned suppliers must keep pricing transparent and fair.

• The AA advised drivers to reduce non-essential journeys as petrol prices may rise.

• Mortgage lenders have reportedly increased interest rates following the conflict.

• Former Chancellor Jeremy Hunt warned energy price rises could affect inflation and economic growth.

What’s next: The UK government says it will monitor the situation and consider further measures to protect consumers and businesses.