The US-Israeli attack on Iran, and its aftermath, has upset the global economy, creating a very different picture for Rachel Reeves’ Spring Statement.
She’ll outline the forecasts for the UK economy over the coming years, although they were written before the outbreak of the conflict last weekend.
Oil prices have risen further as the Middle East war extended into a fourth day, sending stock markets tumbling across the UK and Europe on fears of a prolonged conflict.
Brent crude rose by another 4% on Tuesday to stand at a one-year high of nearly 81 US dollars a barrel, after Iran took action to block a crucial shipping route for crude tankers, while London’s FTSE 100 Index fell sharply lower, down more than 2% in early trading.
An Iranian official has reportedly warned tankers on the Strait of Hormuz that no ships would be allowed to pass through, as part of its response to a US and Israel military campaign against Iran, which has continued since an initial strike killed Supreme Leader Ayatollah Ali Khamenei on Saturday.
Oil had soared by as much as 13% at one stage on Monday, rising above 82 dollars a barrel, before paring back.
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