UK inflation likely to rise because of Middle East war, says Rachel Reeves

British chancellor says she will take steps to help families with cost of living as oil prices surge

• Middle East crisis – live updates

Britain is likely to be hit by rising inflation because of the US war with Iran, the UK chancellor has said, as she suggested that a “rapid de-escalation” would be the best protection against a jump in energy prices.

Both Rachel Reeves and the prime minister, Keir Starmer, suggested the government would be prepared to intervene to protect UK households against major cost-of-living shocks as oil prices surged past $100 (£75) a barrel for the first time since 2022.