Darren Jones, chief secretary to British Prime Minister Keir Starmer, said people could see higher energy, food and air ticket prices for at least eight months after the end of the US-Israeli war with Iran, the BBC reported on Sunday.
Jones, the senior minister, added that the Starmer-led government was “looking at all those things” as it stepped up its plan to offset potential food and fuel shortages caused by the war.
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His remarks come as energy production and transportation in the Middle East region have either slowed or stopped entirely due to the conflict, a move that has caused problems in the supply chain and led to a global surge in prices.
British minister blames Trump for war with Iran
Chief Secretary Starmer said he was looking at the economic impact of the US-Iran war “in great detail”, adding that “price pressures” were more likely than gaps in supermarket shelves. He continued: “Our best estimate is eight or more months from the point of resolution that you will see the economic impacts coming through the system.” Jones blamed US President Donald Trump for the war in the Middle East, adding: “So people are going to see higher energy prices, food prices (…) air ticket prices as a result of what Donald Trump has done in the Middle East.”
Steps taken by the British Government
Earlier this month, UK government officials drew up a worst-case scenario of food shortages by summer if the war continued. The list included chicken and pork.
In addition, the Starmer government increased efforts to reassure the public. He urged drivers to continue filling up gas and use their cars as normal. It also advised them not to change their travel plans due to fears of a possible jet fuel crisis.
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The BBC, citing a source, said the UK government was also preparing for a scenario involving cutting off supplies of carbon dioxide (CO2), which is 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 produces CO2 as a by-product, to support gas supplies.
Are British pubs running out of draft beer?
Jones told the BBC on Sunday that he had raised concerns about British pubs potentially running out of draft beer during this summer’s World Cup due to a lack of CO2. He added that “we are doing everything we can to ensure that this is not the case.”
Most of the UK’s CO2 is imported from Europe, but it is often created as a by-product of fertilizer production, which requires natural gas.
Concerns are growing about the UK supply
UK supermarkets have said they are working with the government to prepare for the worst-case scenario. Last month, the National Farmers Union warned that prices for cucumbers and tomatoes could rise in the coming weeks, with the cost of other crops and milk expected to rise over the next three to six months.
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British airlines said they were not currently facing a shortage of jet fuel, noting that they were buying fuel in advance and that airports were maintaining reserves.
Peace talks between the US and Iran have failed
Peace talks between the US and Iran collapsed earlier this month after the two sides met for talks in the Pakistani capital Islamabad and blamed each other for the failure to reach a deal. The Strait of Hormuz, which is responsible for transporting a fifth of the world’s oil reserves, was effectively closed 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 boosted oil and gas prices.
