How the Iran war may affect your bills and finances

Mortgage and energy markets have already reacted: the average rate on a two-year mortgage deal has risen to 4.87% and the average five-year fix is up to 4.98% as of 9 March, Moneyfacts said.

“From petrol prices to mortgage rates, the US-Israeli war with Iran has already had an impact on people's finances in the UK”

BBC

A couple of lenders have withdrawn entire product ranges expecting to reprice them higher, Adam French of Moneyfacts commented.

BBC

Household gas and electricity have some protection from Ofgem’s price cap in England, Wales and Scotland until July, and prices are expected to go down in April.

Wholesale costs between now and late May will determine bills from the summer, and a sustained spike could cause sharp increases.

The article highlights heating oil users as immediately exposed, with campaigners saying prices have more than doubled since the conflict began and panic buying has limited orders, Emma Simpson of Rural Action Derbyshire said.

The Competition and Markets Authority’s Emma Cochrane warned suppliers should deliver at agreed prices and be clear on terms.

The Office for Budget Responsibility had forecast inflation at 2.3% this year and 2% a year from 2027 before the air strikes on Iran began, but analysts now view that as increasingly unlikely.

The Bank of England’s governor Andrew Bailey had said there was scope for further rate cuts earlier, but analysts have largely ruled out a March cut.

Rising jet fuel prices mean airlines could pass higher costs on through fares.