News Desk
LONDON: The ongoing conflict between Israel and Iran has triggered a ripple effect on global energy markets, forcing the UK and other European nations to grapple with rising fuel prices and potential shortages.
For the first time since 2022, households are paying record-high petrol prices. According to British media reports, the Treasury’s OBR watchdog warned that if oil and gas prices remain at current levels, annual inflation could hover around 3% by year-end.
Economist Professor David Miles cautioned that continued energy price hikes would directly impact inflation. Statistics show petrol prices surged 3.5p in a week to 135.67p per liter, while diesel jumped 6.9p to 149.01p per liter. Fuel shortages have also been reported in several regions.
The Consumer Price Index (CPI) had been steady at 3% over the past 12 months, well above the Bank of England’s 2% target. Hopes of an interest rate cut this month, which would have eased mortgage pressures, have been undermined by the escalating Middle East crisis.
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