We are already paying the soaring price of this war

Not before time, Sir Keir Starmer has warned the British people that the longer the Iran war goes on, “the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business”.

- 

At the moment, he adds, “our job is to get ahead of that, to look around the corner, assess the risk, monitor the risks, and work with others in relation to that”.

So it is, but the prime minister doesn’t need to look around the metaphorical corner when immediate consequences are staring him in the face. A little over a week after the Israelis and Americans launched their “epic” attacks, the world price of gas and electricity has shot up, and with them fuel bills. The cost of petrol at the pumps in the UK is already rising.

Stock markets continue to slide, reducing the value of savings and pension pots. The yield demanded by investors to lend to the UK government is up once again, especially near-term rates – signalling worries about short-term inflation and glum prospects for the public finances.

The recent warm optimism radiating from Andrew Bailey, the governor of the Bank of England, about interest rates steadily falling through the year has been supplanted by market expectations of rates actually increasing. That is now seen as more likely than not.

Banks and building societies are already repricing mortgage deals upwards - not good for property values and the “feelgood factor”.

Donald Trump says the surge in the price of oil is a “very small price to pay for safety and peace”. Unfortunately, it is not the Us president who will be footing the bill.