Healey Sounds Alarm on Price Gouging Amid Iran Conflict

UK Chancellor John Healey has issued a warning to retailers against price gouging as the Iran conflict continues to impact the country's economy. The ongoing war in the Middle East is driving up energy prices and inflation, exacerbating the cost of living crisis.

Economic forecasts suggest that if the Strait of Hormuz remains closed into 2027, the UK could face a recession, with GDP growth slowing to 0.5% this year and contracting by 0.2% next year. The Bank of England has signaled that inflation could rise above 4% next year.

However, if the strait reopens by the end of the third quarter of this year, economic forecasts predict a more resilient outlook, with growth of 0.9% in 2026 and 1.2% in 2027.

The conflict is also affecting markets, with crude oil prices falling sharply after Donald Trump canceled planned strikes on Iran. However, fuel prices for UK motorists continued to rise over the weekend, with petrol hitting an Iran-war high of 160.85p a litre.