Chancellor warns conflict in the Middle East has increased oil and gas prices

The Chancellor has warned conflict in the Middle East between Israel and Iran has pushed up oil and gas prices by 10%.

Rachel Reeves has issued a warning over the impact of trade and Iran has threatened to close the Strait of Hormuz which transports energy supplies world-wide.

Rachel Reeves insisted to the BBC in an interview that the government will not take “anything off the table” to help support Brits should energy price soar.

The Chancellor said, “we’re not anywhere near that stage” at the moment as it is “early days.”

Reeves told Sky News, “There are two immediate concerns. The first is around oil and gas prices. Over the course of this week, oil and gas prices have gone up by just over 10%.

“They are still down compared to a few months ago but of course we are keeping an eye on that.

“At the same time, trade routes are very important through the Middle East. We’ve seen disruption there in the past, partly because of the Houthi attacks for example, and so that is of course a concern.”

Last week, JPMorgan’s Natasha Kaneva said Israel’s attack on Iran will push the region into a “new conflict with uncertain consequences.”

She added, “While the initial attack avoided energy targets, the Israeli offensive could extend over several days, with Iran vowing to retaliate, potentially having a significant impact on global energy markets.”