Price hikes due to Iran war will be felt for at least eight months after conflict ends, UK minister warns
Our political correspondent Millie Cooke reports:
Price hikes as a result of the Iran war will be felt for at least eight months after the conflict ends, a government minister has warned.
The chief secretary to the prime minister, Darren Jones, warned people will see higher energy, food and flight prices “as a consequence of what Donald Trump has done in the Middle East” and said there will be a “long tail from this”.
He told the BBC that consumers are more likely to see prices go up rather than gaps on supermarket shelves as a consequence of the conflict.
“Quite frankly, that’s probably going to come online, not just in the next few weeks, but the next few months. There’s going to be a long tail from this”, he said.
Pressed on how long people will see economic disruption, Mr Jones said: “I think our best guess is eight-plus months from the point of resolution that you’ll see economic impacts coming through the system.”
Alex Croft27 April 2026 11:14
Too early to drop sanctions on Iran, says von der Leyen
We’ve just heard from the president of the European Commission, Ursula von der Leyen, who has been discussing EU sanctions on Iran.
“We think the dropping of sanctions would be too early,” she tells a meeting of the German conservative CDU and its CSU Bavarian sister party in Berlin.
Ms von der Leyen adds that the sanctions were in place due to Iran’s suppression of its own population.
“We first have to see a change, a fundamental change in Iran for the dropping of sanctions,” she said.
President of the European Commission Ursula von der Leyen speaks next to Chairman of the CDU/CSU parliamentary group Jens Spahn and Parliamentary group leader of the CSU Alexander Hoffmann (Reuters)
Alex Croft27 April 2026 10:55
Starmer to hold emergency talks with Bank of England on Iran impact
UK prime minister Sir Keir Starmer will hold talks with representatives form the Bank of England to discuss the impact of the war in Iran.
Representatives from the bank will join a meeting of the government’s emergency response committee on Tuesday, Sir Keir said.
“Tomorrow I’m chairing a meeting of Cobra on the impact (of the war), bringing in people from the Bank of England, so that you can be sure we will stand by working people in this crisis,” Sir Keir said on Monday in a speech to trade union members.
Prime Minister Sir Keir Starmer faces another bruising week (Dan Kitwood/PA) (PA Wire)
Alex Croft27 April 2026 10:38
Iran bans steel exports after industry targeted in US-Israeli attacks
Iran has banned the export of steel slabs and sheets until May 30, state media reported on Monday.
The country’s steel industry has been targeted in strikes carried out by the US and Israel until a temporary ceasefire came into place earlier this month.
Etemad newspaper reported that the country’s steel industry lost around 10 million tons of annual production capacity during the attacks, amounting to around 25 to 30 per cent of the country’s total steel production capacity.
Alex Croft27 April 2026 10:20
Watch: Trump says Iran can call US to negotiate an end to the war after cancelling Witkoff and Kushner visitTrump says Iran can call US to negotiate an end to the war after cancelling Witkoff and Kushner visit
Alex Croft27 April 2026 10:06
Spain urges consumers to buy airline tickets ASAP
Spain has urged consumers to buy airline tickets as soon as possible in order to avoid risking higher fairs caused by rising oil prices due to the US-Israeli war on Iran.
The country welcomed a record 97 million tourists last year – a rise of 3.5 per cent since 2024.
Industry and tourism minister Jordi Hereu said Spain could maintain a similar pace of growth this year, but higher fuel costs have thrown this into doubt.
“What we’re recommending is that people buy their tickets now because it’s true that (airlines) are currently using kerosene that was purchased some time ago, and therefore there’s an element of price fluctuations involved,” Hereu said.
Alex Croft27 April 2026 09:52
Oil prices rise to near-three week highs as US-Iran peace talks falter
Oil prices have hit a near three-week high as hopes of progress on peace talks between the US and Iran were dashed once again, after President Donald Trump cancelled plans to send a negotiating team to Pakistan.
The cost of benchmark Brent crude continued its ascent, rising 2% to just under 108 US dollars a barrel in early morning trading on Monday, rising back up to levels seen before the first round of peace talks began in early April.
Ceasefire talks appeared increasingly fragile, as Mr Trump declared over the weekend that envoys from Washington would no longer be travelling to Islamabad in Pakistan because of a lack of progress with Iran.
Mr Trump told Fox News on Sunday: “If they want, we can talk but we’re not sending people.”
Alex Croft27 April 2026 09:29
Why a century-old naval disaster means Trump can’t take the Strait of Hormuz by force
As Donald Trump and Iran insist on keeping the Strait of Hormuz firmly closed while a shaky ceasefire persists, John W S Clark looks back at a similar stand-off more than a century ago, which did not end well.
Why has nothing been done to reopen the Strait of Hormuz?
The answer is simple – as his advisers will have told Donald Trump before he attacked Iran, it is almost impossible to clear a passage through a minefield when the shoreline is held by the enemy, without being prepared to take significant casualties. And this, it seems, the US is not prepared to do.
It is one thing to bomb a less technologically sophisticated enemy from the air, but quite another to get involved in a real fight at sea level with an opponent who has been planning this form of asymmetric warfare for a very long time.
History gives a stark lesson on why America needs to tread warily – a page from the First World War.
Alex Croft27 April 2026 09:09
Expert View: Breakdown in Iran talks sends oil shooting higher again
Susannah Streeter, chief investment strategist at Wealth Club, tells PA Media that the breakdown in Iran talks has sent oil prices shooting up again.
“The rug has been pulled by the Trump administration, sending plans for talks over Iran skidding once again, and oil prices shooting higher,” she said.
“The President said negotiators would be wasting their time heading to Pakistan and the lack of progress has hit sentiment at the start of the week.
“Some hopes of a resolution are being kept alive, with reports that Iran has put another proposal on the table which aimed at de-escalating the conflict and potentially seeing the key Strait of Hormuz reopen.
“But details are scant about the offer and patience on both sides is clearly frayed. So, Brent crude, the benchmark is climbing higher and reached $108 a barrel in morning trade,” she added.
“Fears of a severe energy crunch are climbing with the International Energy Agency warning that the world is facing the largest energy supply shock on record.”
Alex Croft27 April 2026 08:56
Watch: Price hikes due to Iran war will be felt for at least eight months after conflict ends, minister warnsPrice hikes due to Iran war will be felt for at least eight months after conflict ends, minister warns
Alex Croft27 April 2026 08:26