A minister has refused to commit to Labour’s £300 energy bill cut promise as fuel costs have surged since the Iran war.
The price of oil has soared above $100 a barrel after the US and Israel launched airstrikes towards Iran last Saturday, causing widespread conflict in the Middle East.
G7 nations will meet later on Monday to discuss surging prices and whether to conduct a joint release strategic oil reserves to ease pressure on markets.
Communities secretary Steve Reed said the government is “keeping a very close eye” on oil prices as it remains unclear “how long the situation in the Middle East will go on for.”
However, he would not commit to promising the government would be able to keep its pledge to slash £300 a year off household energy bills.
He continued: “I don’t think we need to always look at the worst case scenario. As things stand, people will get 150 pounds off their energy bills in April, and that’s locked in then for three months.
“Perhaps this situation will be resolved within that time, and that’s what we all that’s what we all hope for.”
Analysis: Oil above $100 is ‘notable milestone’ but could have been worse
Karl Matchett, money editor reports:
Oil certainly is above $100 now, a notable milestone to have breached – but it could have been worse. The price of Brent crude actually spiked to around $119 overnight, before falling back with an early announcement that the G7 nations are to discuss releasing emergency supplies to offset some of the disruption through Iran.
Futures markets have Brent crude at more than a third higher (38%) in the past week alone, but even as recently as 18 February – just 20 days ago – it was still at $70, meaning a 54 per cent spike in three weeks to today’s price of just under $108.
XTB research director Kathleen Brooks has noted that WTI, the US version of our Brent crude, jumped almost 30 per cent at one stage overnight for it’s biggest one-day price gain ever.
Bryony Gooch9 March 2026 08:07
UK-US relationship is ‘of course’ recoverable, says minister
Athena Stavrou, political reporter, reports:
A government minister has insisted the strained relationship between the UK and US is “of course” recoverable.
Donald Trump unleashed yet more criticism of Sir Keir Starmer’s response to the outbreak of war in the Middle East over the weekend.
He wrote on Truth Social that the US does not need anyone to “join wars after we’ve already won”.
But communities secretary Steve Reed denied the rift could not be healed, and told Sky News: “The relationship between the UK and the US is deep and it’s abiding, and the leaders of the two countries don’t always agreed on absolutely everything.”
Bryony Gooch9 March 2026 08:06
UK government ‘keeping very close eye’ on oil prices
Athena Stavrou, political reporter, reports:
The government are “keeping a very close eye” on oil prices as the cost of a barrel soars amid continued conflict across the Middle East.
Communities secretary Steve Reed said the government will keep the situation of prices at home “under review”, and admitted “we don’t know how long the situation will go on for”.
However, he told Sky News that “there’s no threat to supplies at the moment”, and rejected calls for the government to open up more drilling in the North Sea.
He said: “The oil that comes out of the North Sea is no cheaper for British people, or oil that comes from Russia or from the Middle East, or from any of the other hotspots around the world, because the price is set globally.”
Bryony Gooch9 March 2026 08:00
