UK Treasury wants to cap food prices
Why it matters and what it means
The escalation of the Middle East conflict in late February 2026 transformed the global inflation outlook and introduced severe supply chain risks for UK retail operators. The subsequent maritime blockade of the Strait of Hormuz by Iran and its regional allies has severely disrupted the transit of vital global commodities. Daily ship transits through the strait, which historically exceeded 100 vessels, have plummeted to between 2 and 16. This blockade has cut off approximately 20 per cent of global oil and gas supplies alongside substantial quantities of finished fuels, including 3.3 million barrels per day of refined products and 1.5 million barrels per day of liquefied petroleum gas.
