GB News’ breaking update could have a disastrous blow for Rachel Reeves.

Chancellor Rachel Reeves at Downing Street

The conflict in the Middle East could have a major blow on the UK economy (Image: Getty)

GB News’ usual programming was halted for major breaking news after it was revealed that the conflict in the Middle East could have a significant impact on the UK economy. During Tuesday’s (March 3) breakfast show, presenters Ellie Costello and Mark White were joined by Press Association News Editor Theo Usherwood, who underlined how the current strikes in Iran could also affect Chancellor Rachel Reeves’ Spring Statement. The journalist detailed: “I think the Treasury will be very clear in the lead-up to this that they don’t want to cause major fireworks.

“It’s not a budget, it is a small fiscal event,” he added, as Costello remarked: “They really want to fly under the radar with this, don’t they?” This comes ahead of her appearance in the House of Commons today, where Reeves will deliver her spring forecast. Ahead of the address, the Chancellor insisted she has “the right economic plan for our country “and that “working people are better off” thanks to Labour. On GB News, Usherwood responded: “They have an opportunity to do so because of what’s happening in Iran; inevitably, that’s going to have a huge impact on the fortunes of the British economy.”

GB News presenters and Theo discussing Reeves

Rachel Reeves will outline her Spring Statement later today (Image: GB News)

“We’ve already seen wholesale gas prices jump up by 50%; that’s going to feed through if this is a prolonged conflict and the IRGC [Islamic Revolutionary Guard Corps] continue to shut down the Strait of Hormuz.”

The GB News guest continued: “That’s going to lead to sustained increases in the costs of energy for homeowners, and that will inevitably lead to inflation as well.

“It’s going to cost more to import goods, especially from the far east, rather than going through the Suez Canal, we’ll have to go around the Horn of Africa.” Usherwood added: “It could have a major impact on her fortunes and the fortunes of the economy.”

Costello then questioned: “Will she [Reeves] stick to the plan or will she be forced to change course, bearing in mind the escalating tensions in the Middle East?

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Clouds of black smoke after Iran was hit

US and Israel hit Iran with strikes in their ongoing conflict (Image: Getty)

To which the PA News Editor replied: “I think they’re crossing their fingers and toes, certainly in terms of this announcement, they won’t be looking to make any major policy changes.”

Analysts have warned that household energy bills could surge to up to £2,500 a year if the Iran conflict causes long-term disruption to global gas supplies.

Shipping traffic through the Strait of Hormuz has mostly ground to a halt after Iran attacked tankers in retaliation for the US and Israeli attacks that killed Ayatollah Ali Khamenei, the Iranian supreme leader.

The Strait is a critical chokepoint for the flow of both oil and gas from the Middle East. Britain’s benchmark gas price, NBP, leapt by 54% on Monday. Brent crude, the global benchmark oil price, was up about 9% at $79.40 (£59.55) per barrel.