The economic impact of the Iran conflict could last for more than eight months after any resolution, according to Chief Secretary to the Prime Minister Darren Jones.
He said the financial fallout would be felt through rising prices rather than shortages on shop shelves.
“You’re going to see prices go up a bit as a consequence of what Donald Trump has done in the Middle East,” he told the BBC, adding the effects would have “a long tail”.
Asked how long elevated petrol and diesel prices could persist, Mr Jones said the impact may continue for months after stability returns to the region.
“I think our best guess is eight‑plus months from the point of resolution that you’ll see economic impacts coming through the system,” he said.
Household energy bills, food costs and airfares were identified as the areas most likely to be affected.
“People will see higher energy prices, food prices and those types of issues, flight ticket prices, as a consequence of what Donald Trump has done in the Middle East,” he said.
Mr Jones added the Government is assessing measures to support households through the period of higher costs.
Darren Jones warned the Iran conflict will drive UK price rises for eight months after a resolution is made
|
GETTY
“The Government here in the UK, the work that I’m doing with the Prime Minister is looking at all of those things and saying, ‘What can we do within our power to help people to get through those difficult times?’”
The conflict began on February 28 when the United States and Israel launched a military strike against Iran, escalating tensions across the region.
Fighting disrupted energy infrastructure and shipping routes, particularly through the Strait of Hormuz, a key global transit point for oil and gas.
A temporary ceasefire was announced on April 8, providing a pause in hostilities.
Sir Keir Starmer has insisted the Iran conflict is ‘not our war’
|
REUTERSAnalysts have warned that even if stability is maintained, damage to infrastructure and disruption to supply chains could continue to affect energy markets.
The UK remains exposed to global energy price shocks as a net importer, despite receiving around one per cent of its gas from the Middle East.
Mr Jones also confirmed a Government working group is monitoring the risk of carbon dioxide shortages that could affect beer supplies during the World Cup this summer.
“I raised this issue because if there is a problem with jet fuel on holidays and carbon dioxide on beer the summer might be pretty depressing for people, but we’re doing everything we can to make sure that it’s not the case,” he said.
The Government has committed £100million to reopen a carbon dioxide plant that closed in September to maintain supplies used in drinks production and industrial processes.
Jet fuel has been among the commodities most affected by the conflict, contributing to higher flight costs and ongoing disruption to travel.