The UK is treading a very thin line and could enter another financial recession.
New reports show that Iran’s missile attacks on Qatar are having catastrophic knock-on effects on Europe and Asia. On Thursday, 19th March, the country carried out a series of air strikes on Ras Laffan’s liquefied natural gas (LNG) factory. This has consequently led to a drastic surge in gas prices globally.
It’s said that it could take up to five years for the UK to recover from this blow. Concerns have already been shared across the block, with energy market traders describing it as an ‘apocalyptic now.’
On 28th February, the United States of America joined forces with Israel for a series of air strikes on Iran. Since then, the two countries have created an official alliance against Iran. Inflicting a war that has been persistent for three weeks.
The CEO of Qatar Energy, Saad Sherida Al-Kaabi, has urged that the gravity of the issue be addressed. The attacks have already caused up to $20 million worth of damage. Since the UK gets the vast majority of its gas from the US and Norway, the crisis in Qatar creates a problem. Since this war started, UK gas prices have surged by 20%.
What is the government doing about it?
Chancellor of the Exchequer Rachel Reeves has urged the importance of providing support to low-income families during this period. Additionally, the tax plans she proposed could mean more financial backing for mayors to spend on fixing the economy. Greater governmental support will also need to be put in place for those from working-class backgrounds.
Labour Member of Parliament (MP) and UK Prime Minister Keir Starmer, in alliance with the leaders of France, Germany, Italy, the Netherlands and Japan, said in a statement:
