Oil prices latest: Labour pledge to cut energy bills in jeopardy as Middle East crisis sends fuel costs soaring

The US president’s latest outburst has raised questions over King Charles’ expected state visit to the US in April amid a widening rift in the so-called special relationship.

The Liberal Democrat leader said Mr Trump should not be afforded “yet another huge diplomatic coup” after launching what he called “an illegal war” on Iran.

Political reporter Athena Stavrou reports:

Sir Keir Starmer will promise to protect Britons from the economic impact of the Middle East conflict as oil prices soared.

The Prime Minister will acknowledge people’s concerns about the threat of rising bills in the wake of the US-Israeli assault on Iran and Tehran’s reprisals against countries across the region.

Ahead of a visit to a community centre in London on Monday, Sir Keir said “supporting working people and their families with the cost of living is always top of my mind”.

Oil prices have soared above 100 dollars a barrel for the first time since 2022 in response to the crisis.

London’s FTSE 100 Index fell nearly 2 per cent soon after opening as the Middle East conflict caused an acute supply crunch.

Political reporter, Athena Stavrou, reports:

Rachel Reeves is set to join an emergency meeting of G7 finance ministers amid mounting concern the Middle East crisis could impact energy prices at home.

The chancellor will reportedly discuss a possible joint release of petroleum from reserves co-ordinated by the International Energy Agency to help tackle the surge in oil prices.

It comes as oil prices rocket above $100 a barrel for the first time in nearly four years as the escalating conflict in Iran sparks a mounting crude supply crisis.

Political editor David Maddox reports:

The Tories will table a motion today to force a vote on Rachel Reeves’ plans to hike fuel tax by 5p a litre.

It comes amid fears that the price at the pump will be hit by costs rising sharply as a result of Donald Trump’s war with Iran with oil prices topping $100 a barrel.

The duty rise will be the first in 15 years.But shadow Tory chancellor Sir Mel Stride has claimed that Labour are piling up the benefits bill instead of prioritising motorists and commuters.

He said: “The latest developments in the Middle East make it even more important for Rachel Reeves to reverse course and scrap the rise in fuel duty she announced at the Budget.

“Labour are piling up the benefits bill instead of prioritising motorists and commuters. For every year of the last Conservative government, we found the resources to freeze fuel duty. Labour did not make the same choices and chose ever higher spending instead. They must scrap the rise before it’s too late.”

London’s FTSE 100 Index fell nearly 2 per cent soon after opening amid a mounting oil crisis as the Middle East conflict causes an acute supply crunch.

The blue chip share index was 181 points lower, down 1.8 per cent, at 10103.71 within the first 10 minutes after trading opened.

The FTSE 250 Index fell 2.3 per cent.

Chris Beauchamp, chief market analyst at online trading and investing platform IG, said: “The market is now facing its biggest crisis since Liberation Day, and arguably since Covid.

“The hubris of the US move on Venezuela has been followed by nemesis in its attack on Iran, and the election of a hardliner as Iran’s supreme leader just makes a ceasefire less likely.”

He said: “Stock markets have raced to catch up to all the news, but we are now looking at a vastly increased chance of a US and global recession as inflation surges.

“While a co-ordinated release of oil reserves provides temporary relief, it is a limited response, and is dwarfed by the loss of oil output from the Hormuz closure and the shutdown of production in the region.”

G7 nations will hold an emergency meeting this afternoon to discuss the surging oil prices as the war in Iran escalates.

Finance ministers from leading industrialised countries, including UK Chancellor Rachel Reeves, will gather this afternoon to discuss the economic impact of the conflict.

Global oil prices reached nearly $120 over fears of a prolonged disruption to energy supplies through the key Strait of Hormuz shipping route.

The G7 meeting is set to discuss a joint release of petroleum from reserves co-ordinated by the International Energy Agency, according to the FT.