Reeves warns inflation could rise as Iran war hits oil prices

London — Chancellor Rachel Reeves warned that UK inflation could rise because of the Iran war as oil prices surge. She said she was ready to support a ‘co-ordinated release’ of international oil reserves to help stabilise markets and shield households from higher costs.

She also signalled that inflation in the UK is likely to rise, and that she will take steps to help families with the cost of living as oil prices surge.

The comments come as the government faces pressure to act as fuel prices are expected to spike amid the conflict in the Middle East.

Analysts say energy shocks have traditionally flowed into consumer prices, but Reeves emphasised preparedness to use policy tools to dampen any spike, noting that the coordinated reserve release is one possible lever.

In a broader context, the government says it will keep households informed and act as needed to protect living standards during this period of volatility.

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