Independent readers are already worried about soaring prices and the cost of living as the escalating conflict in the Middle East has heightened fears that another squeeze could be on the way.
Oil prices have jumped after US and Israeli strikes on Iran, with attention focused on the Strait of Hormuz – the narrow shipping route through which around a fifth of the world’s oil and gas flows. Brent crude has climbed back above $80 a barrel and gas prices have spiked amid concerns about disruption.
Even a short-lived crisis could feed through to higher petrol prices and rising household energy bills. If the conflict drags on, economists warn it could push up food and everyday goods, while delaying hoped-for interest rate cuts – keeping pressure on mortgages, rents and borrowing costs.
Stock markets have already wobbled, with the FTSE 100 and other major indices falling this week. For households with pensions, ISAs or workplace investments, volatility may quickly be felt.
After years of squeezed budgets following the pandemic and the war in Ukraine, many families had hoped the worst was behind them. This latest geopolitical shock has revived concerns about living standards.
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