European Economic Policy

Oil prices above $80 driven by Iranian conflict threaten UK inflation control as Chancellor Rachel Reeves prepares Spring Statement 2026. Rising two-year gilt yields reflect investor concerns about debt sustainability, forcing fiscal restraint despite mixed economic signals.

Chancellor Rachel Reeves will delay major fiscal announcements in her Spring Statement 2026 as UK government borrowing costs ease but unemployment rises. The Iran conflict's impact on oil prices threatens renewed inflation pressure, complicating coordination with European economic policy amid parallel US fiscal uncertainty over Federal Reserve leadership and Social Security funding.