We’re asking Mirror readers: Are you worried about rising costs since the start of the war in Iran? Take our poll below to share your view
The effects of “Trumpflation” caused by the US war with Iran could be set to cost UK households hundreds or even thousands of pounds.
We’re asking Mirror readers: Are you worried about rising costs? Take our poll below to share your view. From energy to mortgages, the conflict in the Middle East is already having an impact on UK wallets.
Higher oil prices have led to fears that energy bills could soar this summer, due to disruption in the Straight of Hormuz.
Trade body Energy UK says, based on current predictions from a selection of energy suppliers, the typical household could be facing a £250 jump in their annual gas and electricity bill in the final three months of 2026.
The energy price cap is due to fall from April to £1,641 per year but current predictions say it could start increasing from July. Meanwhile, petrol and diesel prices have already started to rise.
Petrol has now increased by 10p per litre since the start of the conflict in Iran, according to the RAC, and diesel has risen by 20p per litre.
Mortgage lenders have also been hiking rates on the back of the conflict, prompted by a sharp rise in swap rates, which reflect market expectations of future Bank of England decisions.
At the beginning of March, the average of the top ten lenders’ two-year fixed rates for remortgages was 3.77%. Today the average is 4.35%, an increase of 0.58% in less than three weeks.
The cost of a 25 year £200,000 repayment mortgage at 3.77% would be £1,030 per month and £1,095 per month at 4.35% – an increase of £65 per month or £780 per annum.
Similarly, the top ten lender five-year remortgage average has risen from 3.93% to 4.45% – an increase of £58 per month or £696 per annum on a £200,000 mortgage.
In another blow for mortgage borrowers, the Bank of England also today held its base rate at 3.75% and now predicts inflation could hit up to 3.5% in the third quarter.
There is also a concern that food costs could rise. Although the Strait of Hormuz – a focus of the conflict – is not a key trade route for goods coming from the Far East to Europe, it is important for certain agriculture related products.
TUC General Secretary Paul Nowak said: “We always knew that getting our economy back to growth was going to be a bumpy ride – but the government is right to keep investing in infrastructure and stronger public services.
“The risk now is that Donald Trump’s illegal war in Iran drives uncertainty and unleashes future economic chaos. Working people are facing a new Trump-made cost of living crisis.
“While household energy bills are stable for now, other costs like petrol and mortgage rates are already rising. The government must do everything it can to shield hard pressed households and firms from Trumpflation.”
