The conflict in Iran is “likely to put upward pressure on inflation” over the coming months, Rachel Reeves has said.
The Chancellor’s warning about the impact of America and Israel’s war with Tehran came after Prime Minister Sir Keir Starmer said longer the war in the Middle East continues, the more likely it is there will be economic damage in the UK.
Ms Reeves said she was ready to support “a co-ordinated release” of international oil reserves to ease the economic shock of the crisis and called for action to “guarantee the security of vessels passing through the Strait of Hormuz”.
The Chancellor met the finance ministers of other G7 nations on Monday to discuss the possibility of such a release, but it concluded without agreement on any solid action.
Oil prices have soared above 100 dollars a barrel for the first time since 2022 in response to the crisis.
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