Iran War Fears Drive Up UK Energy Prices and Inflation

On 9 September 2026, the Bank of England warned that a war with Iran could push UK inflation above 4 percent, as UK gas prices hit a four-year high amid escalating US-Iran tensions. The United States is also moving to isolate Iran's aviation sector from the global economy. The warnings come as the UK government pays its highest interest rate on a 30-year bond since 1998.