A month into a Gulf crisis, closure of the Strait of Hormuz has driven oil to $120 a barrel, adding £307m to UK fuel costs and threatening £150 on annual food bills. The OECD says £15bn has been wiped from UK growth, the US cost is put at $25bn, and over a million people have been displaced in Lebanon.

OECD cuts the UK’s 2026 growth forecast to 0.7% from 1.2%, the sharpest downgrade in the G20, blaming fallout from a Gulf crisis linked to US policy. It warns of higher inflation and tougher headwinds for Britain.

UK motorists have paid an extra £307m as petrol prices jump, driven by a Middle East crisis pushing crude above $100 and threatening key shipping lanes. The chancellor warned of a “significant” economic hit but announced no new relief for households, with pump prices around 146.4p a litre.

Trump paused planned military action, citing ‘productive conversations’ toward resolving hostilities. Tehran denied any talks, accusing Washington of stalling. Markets reacted: shares rose, oil prices fell.