Rachel Reeves has issued a stark warning regarding inflation amid fears that the escalating conflict in the Middle East could trigger another cost-of-living crisis in the UK, with fuel prices expected to surge.
The Chancellor stated she is "taking action to ensure that people pay the lowest possible price at the pump" and also committed to arranging a meeting for MPs to discuss heating oil prices.
Addressing the Commons on Monday, Ms Reeves said: "The economic impact of the situation in the Middle East will depend on its severity and its duration. The movements that we have already seen are likely to put upward pressure on inflation in the coming months."
It comes as AA president Edmund King advised drivers to "cut out non-essential journeys" as the price of oil surpassed $100 a barrel for the first time since 2022.
US president Donald Trump insisted that a surge in fuel costs was "a small price to pay", but Sir Keir Starmer warned that "the longer the conflict with Iran goes on, the more likely the impact on our economy."
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