UK Warns of Eight Months of Price Hikes After Iran War Ends

Price hikes resulting from the Iran war will be felt for at least eight months after the conflict ends, UK Chief Secretary to the Prime Minister Darren Jones has warned. Jones told the BBC that consumers can expect higher energy prices, food prices, and flight ticket prices "as a consequence of what Donald Trump has done in the Middle East," with the impact stretching well beyond the immediate crisis period. The government has escalated contingency planning following the closure of the Strait of Hormuz, a critical shipping lane responsible for transporting a fifth of global oil and gas supplies, which caused oil prices to soar. The UK government has established a dedicated Cabinet committee, called the Middle East Response Committee, which will meet again on Tuesday under the Prime Minister's chairmanship. A separate contingency planning group led by Jones is convening twice weekly to monitor stock levels and assess supply chain disruption plans. However, Jones acknowledged that consumers are more likely to experience price increases rather than empty supermarket shelves. Earlier this month, the Bank of England cautioned that approximately 1.3 million additional UK households could face rising mortgage costs due to the economic shock caused by the conflict, with the institution's latest financial stability report indicating that the UK's economic outlook has deteriorated. Meanwhile, peace talks planned for this weekend have stalled, with Iran refusing direct negotiations and Trump canceling a planned trip for US negotiators to meet mediators in Pakistan. Leaked government documents revealed contingency planning for a "reasonable worst-case scenario," codenamed "Exercise Turnstone," which warned that UK supermarket goods could face shortages this summer if the Iran war continues. The analysis highlighted that the closure of the Strait of Hormuz could reduce carbon dioxide supplies to just 18 percent of current levels, primarily affecting the farming and hospitality industries, as CO2 is essential for prolonging the shelf life of various food products including salad, packaged meats, and baked goods.