Household energy bills could rise by more than £500 this summer if the escalating Middle East crisis continues, according to the Resolution Foundation. Gas prices have surged to a three-year high and oil prices have climbed sharply after Iran threatened to attack vessels passing through the Strait of Hormuz, a critical global oil shipping route. The disruption has raised fears of renewed inflation and added pressure on families already struggling with living costs.

Iran declared the strait closed and warned it would target tankers attempting to pass through it, prompting the United States to say it may escort ships to ensure energy supplies continue to flow. Oil prices have jumped above $85 per barrel, with analysts warning they could reach $100 if the conflict drags on. United Kingdom gas prices also spiked after production was halted at major facilities in Qatar following reported military attacks.

The turmoil has led to panic buying at some petrol stations in the United Kingdom, though industry leaders have urged motorists to remain calm and purchase fuel as normal. Experts warned that sustained high oil prices could add up to 20 pence per litre to petrol and diesel costs, further increasing inflation and straining household budgets.