Andrew Griffith MP has warned that escalating instability in the Middle East is already beginning to affect the UK economy, with rising energy prices likely to feed through into higher costs for households and businesses across the country.
The warning comes after a busy period assisting constituents in Arundel and South Downs who were seeking to return safely to the UK following the outbreak of conflict in the region. Families across the county had been anxiously awaiting news of loved ones overseas.
Mr Griffith said the economic consequences of the crisis are now becoming increasingly clear, beginning with global energy markets.
Iran sits at the centre of the world’s oil and gas system, with roughly one fifth of global supplies passing through the Strait of Hormuz. The waterway is currently partially closed due to the conflict, triggering sharp movements in energy markets. Oil prices have surged above $100 a barrel while gas prices have also risen amid growing fears over global supply.
Although the UK imports relatively little energy directly from Iran, Britain remains heavily exposed to global price movements. Wholesale gas and electricity prices in the UK are closely linked to international markets, meaning geopolitical shocks abroad quickly affect domestic costs.
Mr Griffith also highlighted the challenge posed by the intermittency of renewable energy generation. When wind speeds are low and sunlight limited, more expensive standby gas generation is required to maintain supply. Over the past week, overcast and calm weather has meant renewables have contributed less to the energy mix, increasing reliance on gas.
Rising energy costs typically spread rapidly throughout the wider economy. Higher fuel prices translate into increased transport costs and greater pressure on household energy bills.
Locally, Mr Griffith said he had already heard reports from residents of sharp increases in heating oil prices, in some cases doubling within a matter of days. Rural communities are particularly exposed to such rises, with elderly and vulnerable residents often most affected. Mr Griffith has called on the Government to take action to support those facing sudden price shocks.
The impact is also likely to be felt across the wider economy. Businesses face higher costs for transport, manufacturing and heating, while farmers see fertiliser prices rise. These pressures are often passed on to consumers, increasing the cost of everyday goods including the weekly food shop.
Alongside the economic consequences, the situation also raises important security considerations. Instability in the Middle East frequently draws Western governments—including the UK—into complex decisions around military deployments, maritime security, intelligence cooperation and diplomatic engagement aimed at stabilising the region.
Mr Griffith said that while Britain may be geographically distant from the Gulf, the country remains closely connected to the region economically and strategically.
As recent developments demonstrate, events in the Middle East can quickly have significant consequences for households and businesses here in the UK.
