What does the oil price surge mean for me?
What is the UK government doing to protect people from the economic impacts of the war in Iran as oil prices surge to more than $100 a barrel
Sir Keir Starmer is facing calls to prepare a support package for the hardest hit in the UK after oil prices moved past $100 a barrel for the first time since 2022.
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The prime minister has said people are “rightly worried” about their bills, with Britain braced for the economic fall-out on the back of Donald Trump’s strikes on Iran.
Oil prices rose above $110 a barrel before 7am on Monday and there are fears that it could soon be at $150, which will affect cost of living standards worldwide.
Sir Keir said: “People are also rightly worrying what this means for life at home – their bills, their jobs, their communities.
“I want to address those concerns head on. I will always be guided by what is best for the British public. And no matter the headwinds, supporting working people and their families with the cost of living is always top of my mind.”
Here are some key questions answered.
What does the oil price surge mean for me?
How will this affect the UK?
Rising oil prices will likely see an immediate price rise at petrol stations, but it is not just motorists who stand to be affected by this.
There are likely to be higher energy costs and, while the energy price cap will stop many UK households being affected, the costs could push up inflation and cause everything to be more expensive.
In addition, the UK has a reliance on gas from the Middle East, which makes it vulnerable to a blockade of the Strait of Hormuz.
The rise in oil prices is the most significant since 2022, when Russia invaded Ukraine and Sir Keir has said that the UK is better prepared than it was then.
What can Sir Keir Starmer do?
Sir Keir is under pressure from unions to prepare a support package for those facing the impacts in the case of a prolonged conflict in Iran, with the UK being drawn in.
The prime minister has said that Britain will be more affected, the longer the war goes on.
He said: “The job of government is obviously to get ahead, to look around the corner, to work with others, and the chancellor speaks to the governor of the Bank of England on a daily basis, with looking cross-departmental within government, assessing the risks, monitoring and talking to our international partners as well about what more we can do together to reduce the likely impact on people here and businesses here, of course.
“But it is important to acknowledge that that work is needed, because people will sense, you will sense I think, that the longer this goes on, the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business.”
What will happen now?
On Monday, the G7 is set to discuss a host of measures following the rise in oil prices.
Finance ministers from the major Western economies are set to convene in an emergency meeting today to discuss prices with the International Energy Agency.
Sir Keir is also set to reassure the public about the economic concerns around the war, and Ms Reeves, who is attending the G7 meeting, will likely report back about next steps.