How the Iran war may affect your money
Mar 11th 2026
From petrol and heating oil to mortgages and interest rates, the conflict has already pushed up costs and added financial uncertainty for UK households.
- Average petrol and diesel prices have risen sharply, with petrol around 139.64p a litre and diesel 157.19p, and further increases possible if oil stays high.
- Two year and five year mortgage rates have risen to about 5.04% and 5.13% respectively, and more than 500 mortgage products have been withdrawn from the market.
- Ofgem's energy price cap protects many variable tariffs until July, but wholesale energy costs over the coming weeks will shape summer bills.
- Households that use heating oil face steep, uncapped price rises and limited deliveries, prompting government and regulator checks.
- Austerity on interest rate cuts means the Bank of England is less likely to cut rates soon, keeping borrowing costs higher and savings returns slightly better.
- Higher fuel and freight costs are already pushing up the price of goods and could lead to more expensive airfares and limited holiday options.