Micah Jonah
March 23, 2026
British Prime Minister, Keir Starmer has convened an emergency government meeting to address the growing economic risks from the ongoing Iran war.
The meeting, expected to be chaired by Starmer, will include Finance Minister Rachel Reeves and Bank of England Governor Andrew Bailey, alongside other senior officials. Discussions will focus on the impact of rising energy prices on households, businesses, and supply chains, as well as broader financial stability concerns.
The UK economy is particularly vulnerable due to its heavy reliance on imported natural gas, high inflation, and strained public finances. Analysts warn that the surge in oil and gas prices driven by disruptions linked to the conflict could push inflation back up to around 5% later this year.
Financial markets are already reacting. Government borrowing costs have surged, with 10-year bond yields climbing above 5% for the first time in nearly two decades. Investors are increasingly pricing in the possibility of interest rate hikes rather than cuts, adding pressure on the economy.
While the government has introduced targeted support measures, including a £53 million package for households using heating oil, officials say broader interventions are still under consideration if the crisis worsens.
The emergency meeting underscores growing concern that the conflict could trigger a wider economic shock, not just in the UK but across global markets.
