The PM is under pressure to cap energy giants’ profits as fuel costs are set to rise amid Middle East tensions. The cost-of-living adviser urges a temporary cap and household support. Officials are drafting contingencies, including lower motorway speed limits and possible petrol rationing.

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.