Economists warn fresh tax rises may be needed as a global energy disruption drives inflation and pushes up borrowing costs, straining the Treasury. Servicing the national debt is costing about £13bn a month, threatening to derail the Chancellor’s plans.

UK energy bills set to surge after incidents at key Gulf gas facilities cut LNG output. Wholesale prices jumped about 25%, with analysts warning costs could remain elevated for years. Inflation risks may force further rate rises, tightening pressure on households and firms.

Energy prices rose after an incident severely damaged the world’s largest LNG plant in the Gulf, which supplies about a fifth of global gas. The UK is assessing inflation and security risks as oil gained around 6%, with markets wary of further disruption to regional energy infrastructure.

A senior US security official appointed by Trump issues an open letter claiming the case for military action against Iran was false, urging the President to end the campaign. He resigns from his counterterror role amid mounting controversy.