Darren Jones, Chief Secretary to the UK Prime Minister , said that people could witness higher energy, food, and flight ticket prices for at least eight months after the end of the US-Israel war with Iran, BBC reported on Sunday.
Jones, a senior minister, added that the Starmer-led government was “looking at all of those things” as it intensifies its plan to offset potential food and fuel shortages caused by the war.
His remarks come as energy production and transportation across the region have either slowed or stopped entirely due to the conflict, a move that has caused supply chain issues and led to an increase in prices globally.
UK minister blames Trump for Iran war
The chief secretary to Starmer said that he is looking at the economic impact of the US-Iran war “in a lot of detail,” and added that “price pressure” was more likely than gaps on supermarket shelves. He went on to say, “Our best guess is eight plus months from the point of resolution that you’ll see economic impacts coming through the system.” Accusing US President of the war in the Middle East, Jones added, “So people will see higher energy prices, food prices […] flight ticket prices as a consequence of what Donald Trump has done in the Middle East.”
Steps the UK government has been undertaking
Earlier this month, UK government officials drew up a worst-case scenario of food shortages by the summer should the war continue. The list included chicken and pork.
Additionally, the Starmer government has also ramped up efforts to calm the public. It has urged drivers to keep filling up with petrol and using cars as usual. It also advised them not to change their travel plans amid fears of a potential jet fuel crunch.
Citing a source, the BBC reported that the UK government is also preparing for a scenario involving disruptions to the supply of carbon dioxide (CO2), used in the slaughter of some animals and in food preservation, if the Strait of Hormuz remains closed.
The Starmer government has also provided funding to reactivate the Ensus bioethanol plant, which makes CO2 as a by-product, to shore up supplies of gas.
UK pubs running out of draught beer?
Jones told the BBC on Sunday that he had raised concerns about UK pubs potentially running out of draught beer during the Men’s Football World Cup this summer due to a CO2 shortage. He added that “we are doing everything to make sure that it is not the case.”
Most of the UK’s CO2 is imported from Europe, but it is often produced as a by-product of fertiliser manufacturing, which requires .
Supply concerns in the UK grow
Supermarkets in the UK have said that they are working with the government to prepare for a worst-case scenario. Last month, the National Farmers’ Union warned that cucumber and tomato prices could rise over the next few weeks, with the cost of other crops and milk expected to increase within the next three to six months.
UK airlines have said they are not currently facing a jet fuel shortage, noting that they purchase fuel in advance and that airports maintain reserves.
US-Iran peace talks failed
US-Iran failed earlier this month after the two sides met for negotiations in Pakistan’s capital city, Islamabad, and blamed each other for the failure to achieve a deal. The Strait of Hormuz, which is responsible for transporting a fifth of the world’s oil supply, has been effectively shut down in retaliation for the US-Israel war. The decision by Iran’s Islamic Revolutionary Guard Corps (IRGC) to keep the Strait closed has rattled the global energy market, a move that has spiked oil and .
