UK Chancellor of the Exchequer, Jeremy Hunt, says it is too early to assess the economic impact of the Middle East conflict.

LootboxPhobia · 2026-03-11T13:23:37+00:00

UK Chancellor of the Exchequer Rachel Reeves stated that it is currently unclear how the Middle East conflict will impact the UK economy, but the government will take measures to protect consumers. She emphasized that it is unwise to speculate on inflation and growth at this time and mentioned that the government is monitoring the situation. Meanwhile, the rise in energy prices caused by the war could push inflation higher. The government will ensure national security and protect consumers.

LootboxPhobia

2026-03-11 13:23:37

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Investing.com – UK Chancellor of the Exchequer Rishi Sunak told lawmakers on Wednesday that it is too early to determine how the Middle East conflict will impact the UK economy, but the government will take measures to protect consumers from any negative effects.

Sunak said at the Treasury Select Committee that it would be unwise to speculate at this stage about the impact on inflation, growth, or interest rates. She said the government is exploring multiple scenarios and closely monitoring the situation.

The Chancellor previously stated that inflation could rise due to the global energy price increases caused by the US and Israel’s war with Iran.

When asked whether the UK can afford large-scale cost-of-living support measures similar to those implemented after Russia’s full invasion of Ukraine in 2022, Sunak said the government will do everything possible to protect consumers while maintaining national security as an economy.

Prime Minister Rishi Sunak has expressed his desire to accelerate increases in defense spending.

Sunak said that compared to her time as Chancellor, the UK is now in a better position to withstand such shocks, and in many ways better off than during the invasion of Ukraine by Russia four years ago. She pointed out that targeted consumer support measures are now more feasible than four years ago.

Since the start of the Middle East conflict, UK government bonds have fallen sharply, partly due to investor concerns that the government may increase borrowing to shield households and businesses from higher energy costs.

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