UK Economy Faces Perfect Storm as War on Iran Drives Up Energy Prices

Labour's plan for economic stability is facing a major challenge as the US-Israeli war on Iran persists, driving up global oil prices and threatening to increase energy bills in the UK.

The cost of crude has remained above $100 per barrel, putting pressure on the Bank of England to raise interest rates, which could further squeeze households already struggling with high inflation.

According to Ofgem, the regulator for Great Britain, the energy price cap may increase by 24% in January, making it even harder for consumers to cope with rising living costs.

The Bank's governor, Andrew Bailey, has warned that high energy prices could lead to higher interest rates, which would further increase borrowing costs and inflation.