The ongoing conflict involving the United States, Israel and Iran is already affecting household finances in the UK. Rising oil prices are influencing fuel costs, mortgage rates and energy bills.
How severe the impact becomes will depend on how long the conflict continues and how quickly global supply chains recover.
Here are some key areas where people may notice changes.
Rising fuel prices for drivers
Motorists may have already seen petrol prices increase. According to the RAC motoring group, the average price of petrol rose by 4.68p to 137.51p per litre. Diesel prices increased by 8.59p to 150.97p per litre.
Analysts estimate that every $10 rise in oil prices adds around 7p per litre to fuel costs.
Since the conflict began, crude oil prices have increased by more than $30. Because of this jump, petrol prices could soon exceed 140p per litre. Some experts warn they may even reach 150p if oil prices remain high.
Motoring organisations say fuel supplies remain stable. However, they advise drivers to avoid unnecessary journeys and drive more efficiently to reduce fuel consumption.
Higher fuel prices can also increase the cost of goods and services. For example, if supermarkets face higher transport costs, food prices may rise as well.
Mortgage rates may rise
Before the conflict began, many experts expected mortgage rates to fall gradually. Now the outlook has changed.
Several major UK lenders have already increased their mortgage rates. Rising funding costs and uncertainty about future interest rates have pushed borrowing costs higher.
The average two-year fixed mortgage rate has climbed to 4.87%. The average five-year fixed rate now stands at 4.98%, according to the financial data provider Moneyfacts.
Some lenders have also withdrawn mortgage deals temporarily. They may relaunch them later at higher rates.
Adam French from Moneyfacts said lenders sometimes pull products when funding costs move too quickly.
Energy bills remain partly protected
Household gas and electricity bills in England, Wales and Scotland are partly protected by the price cap set by Ofgem.
The cap limits the maximum unit price for customers on variable tariffs. The current level will remain in place until July.
Energy prices are actually set to fall slightly in April. However, wholesale market prices in the coming months will determine energy bills for the summer.
If energy costs stay high, millions of households could see higher bills later this year.
During the last major energy crisis following the Russian invasion of Ukraine, the UK government introduced the Energy Price Guarantee to support households.
Heating oil costs rise quickly
The sharpest price increases are affecting households that use heating oil. These homes are common in rural areas and in Northern Ireland.
Unlike gas and electricity, heating oil prices are not capped. Campaign groups say prices have more than doubled since the conflict began.
Some suppliers have also limited orders due to panic buying.
Emma Simpson warned that many households cannot wait for prices to fall if they need oil immediately.
Regulators are now monitoring the situation to ensure customers are treated fairly. The Competition and Markets Authority has reminded suppliers to keep pricing transparent and fair.
Cost of living pressures may increase
Before the conflict started, the Office for Budget Responsibility predicted UK inflation would stay close to the Bank of England target of 2%.
However, those forecasts were made before the current conflict.
Economists now say inflation predictions have become more uncertain due to rising energy prices and market instability.
Despite this, analysts believe inflation is unlikely to reach the 11.1% peak recorded in October 2022. That surge was driven partly by global food shortages linked to the Ukraine war.
For now, experts expect rising fuel and energy prices to increase living costs, but not at the extreme levels seen during the previous energy crisis.
