UK consumers likely to face higher prices ‘for many months to come’

Data shows even if Iran war ends, shop price inflation on rise, while only 16% of firms left unscathed by conflict

Higher prices could persist over the summer even if ceasefire talks between the US and Iran bear fruit, consumers have been warned, with economic shock waves likely to be felt “for many months to come”.

Disruption to global shipping, coupled with soaring prices for energy and raw materials, have driven up costs for UK companies, with the impact already filtering through to prices paid at the tills, according to fresh inflation figures.

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With oil markets nearing the danger zone, a US-Iran deal can’t come soon enough | Heather Stewart

Global prices are approaching a tipping point that could trigger inflation, shortages and, over time, recession

If a US-Iran deal is about to be reached, three months on from the launch of Donald Trump’s Operation Epic Fury, it will not be a day too soon for oil markets, which are approaching a dangerous tipping point.

The cost of a barrel of crude on the spot market – for immediate purchase, effectively – has bounced about $100 since Iran predictably responded to the onslaught from the US and Israel by closing the strait of Hormuz.

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Oil markets nearing ‘red zone’ as Iran crisis continues, warns IEA chief

Surging demand, low reserves and reduced Middle East exports predicted to cause global crunch by August

Oil markets will enter the “red zone” by July and August as stocks dwindle before the summer travel season amid a shortage of fresh oil exports from the Middle East, the executive director of the International Energy Agency warned on Thursday.

Fatih Birol added that the most important solution to the Iran war energy shock was a full and unconditional reopening of the strait of Hormuz.

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Spending watchdog warns £38bn cost of Sizewell C nuclear plant is ‘risky’

National Audit Office says potential benefits are ‘considerable but uncertain’ while risks are ‘immediate and substantial’

The cost of the government’s £38bn nuclear plant in Suffolk is subject to “significant uncertainty” and may outweigh the benefits for UK households until at least 2064, according to the government’s spending watchdog.

The National Audit Office (NAO) has warned that although the potential benefits of the Sizewell C nuclear plant are considerable, they remain uncertain. The risks, however, are “immediate, substantial and borne by the public”.

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Strike near UAE reactor revives concerns over nuclear plant safety in wartime

Attack marks first time military action has forced a fully operating nuclear power plant to rely on backup generators

Middle East crisis – live updates

A drone strike that cut off external power to a nuclear reactor in the United Arab Emirates this week has revived concerns over the safety of nuclear plants during wartime.

Reactor no 3 at the Barakah nuclear plant lost vital off-site power for about 24 hours after the attack on Sunday, forcing it to rely on emergency diesel generators.

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British Gas faces record £112m settlement over prepayment meter scandal

Redress to customers for force-fitting devices in homes includes £20m penalty and £70m of debt write-offs

Thousands of British Gas customers who had prepayment meters force-fitted in their homes will between them receive compensation and energy bill debt write-offs worth up to £112m in the biggest energy supplier settlement on record.

Great Britain’s energy regulator found that British Gas forced PPMs on homes that were not keeping up with their bills at the height of the Russian gas crisis, in one of the most complex investigations in Ofgem’s history.

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Wednesday briefing: How Trump’s attempt to reopen to strait of Hormuz brought war closer again

In today’s newsletter: ​The brief US effort to ​s​teer trapped vessels through the ​waterway ​put the fragile ceasefire under strain

Good morning. Uncertainty once again reigns in the Middle East. The uneasy ceasefire between the US and Iran threatened to disintegrate after Donald Trump launched an initiative – dubbed “Project Freedom” – to help thousands of sailors stranded in the Gulf by the war to pass through the strait of Hormuz.

To Iran, the announcement was a cynical provocation. Flurries of fighting restarted as Iran sought to maintain its grip on the critical passageway out of the region.

UK politics | Zack Polanski falsely claimed to be a spokesperson for the British Red Cross while campaigning for the Green party leadership, the charity has said.

Fuel shortages| Two million airline seats have been cut from this month’s schedules as airlines redraw their operations because of soaring jet fuel prices amid the Middle East conflict.

UK news| A British crew member who became ill after a suspected outbreak of hantavirus on luxury cruise ship the MV Hondius is to be medically evacuated, officials have said.

Tax | An increased windfall tax should be imposed on the UK’s largest banks, say trade union leaders, after the big four lenders reported almost £14bn in first-quarter profits, partly fuelled by market turbulence amid the Iran war.

Society | People from black backgrounds in England are twice as likely to experience strokes as their white counterparts, while also being less likely to receive timely care, according to the largest study of its kind.

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Nigerian refinery accused of sacking union members is key to UK plan to tackle jet fuel shortage

Heidi Alexander says part of answer to strait of Hormuz crisis is importing more fuel from US and west Africa

A refinery in Nigeria accused of dismissing workers for joining a union has emerged as key to the UK government’s hopes of saving the summer holiday amid a jet fuel shortage.

Heidi Alexander, the transport secretary, said at the weekend that part of the answer to the strait of Hormuz crisis was to import more fuel from the US and west Africa.

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Octopus Energy boss: some people would accept blackouts if bills cut

Greg Jackson argues against costly investments in UK’s power grid that are adding to household bills

The boss of the UK’s biggest energy supplier has suggested that some households would accept an occasional electricity blackout in exchange for much lower energy bills.

A year on from Europe’s largest power outage – which left tens of millions of people in Spain and Portugal without trains, metros, traffic lights, ATMs, phone connections and internet access – the chief executive of Octopus Energy argued against costly investments in the UK’s power grid that are adding to household bills.

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CEOs of US’s top energy firms received average pay raise of $12.3m, review finds

Utility bills are up as much as 40% in some regions, and companies shut off power to customers 13m times in 2025

The US’s top utilities’ CEOs enjoyed a 16% pay raise last year – to an average of $12.3m – even as consumers shoulder the pain from high bills spurred by continuing inflation, the Iran war and datacenter growth, a new review of industry financial documents shows.

Utility bills are up as much as 40% in some regions since 2021, and, nationwide, utilities shut off power to customers 13m times last year, federal data shows.

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Renewable energy will boost national security and protect UK from sabotage, minister says

Widely dispersed wind farms and solar panels are harder to target than fossil fuel power stations, Michael Shanks says

Renewable energy will boost the UK’s national security and make the country more resilient against potential aggression or sabotage, the government’s energy minister has said.

Michael Shanks said widely dispersed wind farms and solar panels were much harder to target than large-scale fossil fuel power stations. They are also not vulnerable to supply shocks, such as the current oil crisis caused by the US-Israel war on Iran and the soaring gas prices that followed Russia’s invasion of Ukraine in 2022.

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Trump claims US has total control over strait of Hormuz after Iran seizes two container ships

US president says Tehran hobbled by infighting as Pentagon reportedly briefs mine clearance may take six months

Donald Trump has again said that the US has “total control over the strait of Hormuz”, adding that Iran’s leadership was so hobbled by infighting that it was unclear who was in charge.

But the US president’s claim seemed questionable in the face of the seizure of two container ships by Iranian commandos and a US report warning it could take six months to clear the strait of mines.

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Federal judge blocks Trump administration restrictions on wind and solar projects

The injunction pauses policy giving senior Trump official direct sign-off on federal clean energy projects

A federal judge in Massachusetts on Tuesday struck down several Trump administration actions slowing down development of clean energy, including a requirement that all solar and wind energy projects on federal lands and waters be personally approved by the interior secretary, Doug Burgum.

Denise J Casper, chief judge of the US district court for Massachusetts, ruled that a coalition of plaintiffs representing wind and solar developers were likely to succeed on the merits of their claims that the administration’s actions violate federal statute and would cause irreparable harm if the court did not intervene.

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Trump energy secretary says gas prices might not drop back under $3 a gallon until 2027

Chris Wright says ‘I don’t know’ when asked about lower cost of gas as average price soars to $4 a gallon in US

Chris Wright, the Trump administration’s energy secretary, acknowledged Sunday that it might not be until 2027 before US gas prices come back under $3 a gallon.

Asked by Jake Tapper, the CNN State of the Union host, when he thought “it’s realistic for Americans to expect the gas will go back to under $3 a gallon”, Wright replied: “I don’t know. That could happen later this year. That might not happen until next year.”

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Drax claimed record £999m in subsidies for burning trees in 2025, thinktank says

Company has received about £8.7bn in renewable energy subsidies since 2012, despite claims wood pellets are not sourced sustainably

The owner of the Drax power plant in North Yorkshire received record subsidies of almost £1bn for burning trees to generate electricity in 2025, a climate thinktank has calculated.

The company was paid £999m last year for generating about 4.5% of Great Britain’s electricity from its biomass plant, costing each household £13 a year, according to analysts at Ember.

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Collapse of US-Iran talks heightens fears of prolonged energy shock

Oil prices and borrowing costs are expected to rise this week as tankers remain stranded in the Gulf

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises.

With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington.

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Record number of homes in Great Britain turn to green energy as fuel prices soar

Iran war drives demand for solar panels, heat pumps and EVs, with energy bills expected to rise 18% from July

British households are turning to green home energy upgrades in record numbers to try to keep bills down as the Iran crisis sends global oil and gas prices soaring, data from leading energy suppliers suggests.

Figures show demand for solar panels, electric vehicles and heat pumps in Great Britain has leapt since the war began on 28 February, as households brace for a sharp increase in monthly payments when the next energy price cap takes effect in the summer.

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New Zealand asks US to send fuel tankers to Pacific to alleviate pressure caused by Iran war

After meeting with Marco Rubio, foreign minister Winston Peters says he made sure US understands ‘significant economic impacts on New Zealand and Pacific’

New Zealand has called on the US to send fuel tankers to the Pacific to help alleviate some of the significant economic and fuel pressure caused by the war in the Middle East.

Winston Peters, New Zealand’s foreign minister, met the US secretary of state, Marco Rubio, in Washington on Tuesday, where they discussed bilateral relations, the war in Iran and the Pacific.

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Small UK firms’ energy bills set to more than double due to Iran war

Companies using heating oil have already begun rationing their fuel use, says Federation of Small Businesses

Thousands of independent businesses across the UK are braced for their energy bills to more than double owing to the sharp rise in heating oil costs as the war in Iran pushed Europe’s fuel market prices to fresh record highs.

About 7% of all small and medium-sized companies warm their properties and provide hot water using heating oil, which in some cases has more than doubled in recent weeks.

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Iran strikes Kuwait’s oil infrastructure before Opec+ supply talks

Members reportedly agree a rise of 206,000 barrels a day in May, but move symbolic while strait of Hormuz is effectively closed

Iranian drones have struck Kuwait’s oil infrastructure, causing “severe material damage” that threatens to further disrupt oil supplies already hit by the US-Israel war on Iran.

The drone strikes on Sunday came hours before members of the Opec+ group of major global oil suppliers gathered to discuss how to bolster output despite Iran’s effective closure of the strait of Hormuz shipping route.

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