The Middle East conflict is pushing up energy prices and feeding into UK food costs, with businesses warning the impact is reaching consumers through everyday grocery bills.
The warning has been highlighted by Sainsbury's - a leading British supermarket chain - which says rising energy costs linked to the war involving Iran are feeding through the food supply chain and increasing pressure on prices.
Simon Roberts, the CEO of Sainsbury's, said the government should step in to support the sector, arguing that higher energy bills risk pushing grocery inflation further up.
Energy is a major cost across the industry, from farming and food production to transport and retail, meaning global shocks can quickly translate into higher prices on supermarket shelves.
The UK is particularly exposed to these pressures. Wholesale gas prices have surged since the conflict began, while oil prices have climbed sharply amid disruption to global supply routes.
That broader energy shock is already feeding into inflation. UK food inflation rose to 3.7% in March, and industry bodies have warned prices could increase significantly further by the end of the year.
Businesses say there is only so much they can absorb. While supermarkets are trying to keep prices low, rising costs across production, storage and distribution are making further increases harder to avoid.
The situation highlights how geopolitical tensions are filtering into daily life, not just through fuel prices but also through the cost of basic goods.
Economists warn that if energy markets remain volatile, pressure on household budgets is likely to intensify, turning a distant conflict into a direct cost-of-living issue for UK consumers.
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Overnight Iranian strikes on an air base in Jordan damaged multiple U.S. aircraft and left one without a wing, American media reported. Meanwhile, explosions were heard across parts of southern Iran according to local media reports.
Iranian President Masoud Pezeshkian arrived in New Delhi on Friday to attend the weekend BRICS summit, amid the ongoing U.S.-Iran conflict, joining a host of foreign dignitaries.
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Mexico and the U.S. are racing to secure a trade deal before the U.S. midterm elections in less than eight weeks, according to six sources familiar with the talks, with failed negotiations between Washington and Canada adding urgency.
A Russian strike on a gas station in Kyiv has killed two people, the city's Mayor Vitali Klitschko said in a statement on Telegram. In Russia, online marketplace Ozon has suspended operations in Saratov, southwestern Russia, following a drone strike on a warehouse in the region.
Saudi Arabia is now facing pressure from both ends of the Arabian Peninsula. While the crisis around the Strait of Hormuz is disrupting Gulf shipping and energy flows, fighting has intensified in western Yemen, bringing the Houthis back into direct confrontation with the kingdom.
Iran has warned it will retaliate against any future U.S. attacks, saying American energy interests and infrastructure across the Gulf could become targets in a further escalation of the conflict.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on Sunday that the United States must recognise that the “rules of the game” in its war against Iran had changed “before it is too late”, a day after Washington struck several Iranian tankers in the Gulf.
An Iranian tanker was hit by U.S. forces on Saturday near Iran's key oil export hub, Kharg Island, in the Gulf, the semi-official Iranian news agency Tasnim reported.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
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