UK Chancellor Rachel Reeves cautions that the conflict in Iran is driving inflation higher

Chancellor Warns of Inflation Risks Amid Iran Conflict

Rachel Reeves has cautioned that ongoing tensions in Iran may drive inflation higher in the near future. Her remarks follow Prime Minister Sir Keir Starmer’s statement that prolonged conflict in the Middle East could have negative economic consequences for the UK.

To help cushion the economic impact, Reeves expressed her willingness to back a coordinated release of global oil reserves. She also emphasized the importance of ensuring the safety of ships navigating the Strait of Hormuz.