UK inflation likely to rise because of Middle East war, says Rachel Reeves

Rachel Reeves said the Treasury was ready to support a coordinated release of collective International Energy Agency oil reserves. Photograph: Simon Dawson/No 10 Downing Street

Britain is likely to be hit by rising inflation because of the US war with Iran, the chancellor has said, as she suggested a “rapid de-escalation” would be the best protection against a jump in energy prices.

Rachel Reeves stopped short of setting out any new relief for people who could be hit by rising prices, rebuffing calls to ditch a planned 5p rise in fuel duty in September.