Millions of households in Britain face higher food prices, experts are warning, as the economic fall-out from Donald Trump’s Iran war escalates.
Petrol and diesel prices are already increasing and lenders are pushing up mortgage rates.
With the cost of oil having again topped $100 (£75) a barrel, energy bills could jump later this year if the crisis does not ease.
They have already risen for homes which have oil heating systems.
Stock markets have been hit and the International Energy Agency said the war was creating the “largest supply disruption in the history of the global oil market” as more ships were struck by Iranian drones in the Strait of Hormuz.
Iran has threatened to target British-linked tankers seeking to pass through the strait.
Amid the chaos, Trump posted on his Truth Social platform: “The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money.
“BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World. I won’t ever let that happen!” he added.
Amid the turmoil in global markets, warnings were growing that food prices could go up.
Dr Jonathan Owens, senior lecturer in operations management at Salford University, said: “Although the UK imports very little oil from the Gulf, the closure of the Strait of Hormuz is likely creating significant ripple effects across our food supply chain.
“Transport, packaging, and distribution costs are all expected to rise, ultimately hitting consumers through higher grocery bills.”
Tom Bradshaw, president of the National Farmers’ Union, held talks on Wednesday with Environment Secretary Emma Reynolds and farming minister Dame Angela Eagle on the growing crisis as the cost of fertiliser has doubled to nearly £600 a tonne.
“The Secretary of State recognised that volatility in the global energy market has a huge impact on our food supply chains,” Mr Bradshaw said afterwards.
As the war entered its 13th day, he added: “The impact on food production and food price inflation will depend on what happens over the coming weeks.”
However, Mohamed El-Erian, chief economic advisor at Allianz, stressed that Iran choking off the use of the Strait of Hormuz by tankers was already having an impact which would take at least a month to undo.
“It’s going to take time to get the tankers in the right place,” he told Times Radio, with around 1,000 vessels stuck in the Gulf, including 80 to 90 with British interests.
“It’s going to take time to start production. You talk about four to six weeks, even if the straits are cleared today.”
UN humanitarian chief Tom Fletcher warned that the world was facing a “moment of great peril”.
He added: “On the Strait of Hormuz, I’m really worried about food costs, energy costs, fertilizer costs.
“I’m worried that further escalation will damage other supply routes.”
Trump has defended the military action, insisting that the Hormuz Straits were in “great shape” even though three vessels were attacked in the waterway, a key artery for global oil supplies, within 24 hours.
He also claimed that the Iranian regime was being destroyed, despite US intelligence reportedly not sharing this view.
Democrat senator Chris Murphy accused the president of “gross incompetence” for going to war with Iran “with no plan” to keep open the vital strait.
He added: “Now Iran is laying mines, global oil shipping is paralyzed, gas prices are skyrocketing and food prices are close behind.”
