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Mon, 09 Mar 2026

Mon, 09 Mar 2026 How the Iran war may affect your bills and finances

The conflict in the Middle East could raise the cost of petrol, household energy bills and even food.
Petrol Prices:
* Average petrol prices have risen by 4.68p to 137.51p a litre, while diesel has increased by 8.59p to 150.97p
* Every $10 increase in oil pushes up pump prices by roughly 7p a litre
* Analysts predict that average petrol prices of over 140p a litre are inevitable, and 150p per litre could soon be breached Mortgage Rates:
* Some lenders have raised interest rates on new fixed mortgages due to rising funding costs and uncertainty about the base borrowing rate
* Average rate on a two-year deal is up to 4.87%, and the average five-year fix is up to 4.98%
* There may be fewer mortgage deals available, particularly with longer durations Household Bills:
* The energy price cap in England, Wales, and Scotland protects households from sharp increases in bills
* However, the cap only applies until July, and a sustained period of high wholesale costs could lead to sharp increases in energy prices Heating Oil Prices:
* Campaigners say heating oil prices have more than doubled since the conflict began
* Orders for heating oil have been limited due to panic buying, leaving some households at risk of running out of fuel Inflation:
* Analysts believe that UK inflation is unlikely to return to its peak of 11.1% seen in October 2022
* However, the war is expected to push up prices and reduce economic growth Interest Rates:
* The Bank of England's governor has said there was scope for further rate cuts this year, but analysts now rule out that possibility
* Borrowing money could become more expensive than previously thought, while savings may be slightly more lucrative in times of uncertainty