The US-Israel war against Iran has plunged the global economy into a fresh cost of living crisis, impacting the United Kingdom significantly. The conflict, characterized by US-Israeli strikes on Iran and retaliatory missile and drone attacks by Tehran, has primarily escalated concerns over energy prices, mortgage rates, and supply chain stability. A key flashpoint remains the Strait of Hormuz, a vital global shipping route for oil and gas, which Iran has effectively blocked.

Economically, Britons face a brutal squeeze on living standards. Energy experts warn that the conflict could add over £300 a year to a typical household energy bill, with heating oil costs already doubling for some. Petrol prices have soared, with unleaded expected to reach 150p a litre and diesel potentially 180p by Easter. This surge is due to oil trading consistently above $100 a barrel, a level reminiscent of the 1970s oil shocks and the impact of Russia's invasion of Ukraine. EasyJet's CEO, Kenton Jarvis, confirmed that soaring oil prices would likely lead to increased airfares by the end of summer, despite the airline having hedged much of its fuel.

The UK housing market has also been severely affected. Interest rates on home loans are expected to rise, with financial markets initially predicting four quarter-point increases from the Bank of England by December, later revised to two after a temporary de-escalation by Donald Trump. This uncertainty has led to a