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News The breakdown of the US-Iran peace talks threatens further economic pain for Britons with higher oil prices and risk of shortages, the Government has been warned. Keir Starmer and Rachel Reeves’s economic headache looks set to intensify after experts warned of inflationary pressures that could eventually push interest rates higher. In a phenomenon some have labelled “Trumpflation – the premise that the actions of Donald Trump on the world’s stage are leading to instability and rising living costs in the UK – economists said the crisis could add 1 to 2 percentage points to inflation. They also suggested that the Government could consider releasing oil reserves and rationing household fuel allocations. After talks broke down, Trump said the US would “immediately” begin blockading the crucial Strait of Hormuz waterway, which Iran has been controlling, and suggested he would do so with other – unnamed – countries. But it is understood that the UK Government is not intending to participate in any blockade and is instead focused on pursuing “freedom of navigation” in the waterway.
Published: April 12, 2026 5:38 pm
Source: The i Paper — Read original