Citizens in many countries feeling the economic blow of the war in the Middle East are hoping that a long-term ceasefire between the US and Iran will lead to lasting peace. In the UK, petrol prices have risen by 20% and energy bills are likely to rise significantly as the closure of the Strait of Hormuz, a critical global shipping route, has pushed up oil and gas prices. And if the conflict escalates, the impact on the UK economy will worsen, warns a think tank. Sky News reports.
VIDEO OF THE DAY
The Resolution Foundation said a “serious but plausible scenario” could see government borrowing increase by £16 billion a year in 2029-30 as the Chancellor considers supporting household energy bills.
Simon Pittaway, senior economist at the Resolution Foundation, said: “No one knows where the current conflict in the Middle East will go, but we do know that it will make us all poorer.”
A spokesman for the US Treasury Department dismissed the think tank's forecast as “pure speculation” but said the war showed the need to establish “greater energy security and improve public finances.”
ADVERTISING
“We are strengthening our energy security, supporting British industry and protecting households in a targeted and timely manner,” he added.
Meanwhile, Iran was not intimidated by Trump's threats and responded quite defiantly to the US proposal for a ceasefire.
ADVERTISING