Iran shock puts Starmer’s economic comeback on ice

The UK government is grappling with the economic fallout of the escalating conflict between Iran and Israel. Following Iran's missile attack on Israel, oil prices have seen immediate upward pressure, rising by 5 percent. This geopolitical shock arrives at a critical time for Prime Minister Keir Starmer and Chancellor Rachel Reeves, who are preparing for a high-stakes budget on October 30. The conflict threatens to reignite inflation, potentially forcing the Bank of England to keep interest rates higher for longer, which would undermine the government's central mission of driving economic growth. UK military assets, including RAF jets, have already been involved in defensive operations, highlighting the direct security and fiscal implications of the crisis.