Conflict in Iran: What It Means for Oil Prices, Inflation, and Your Business

The recent escalation in Iran has sent oil prices sharply higher—and that matters more than most businesses might realise.

Fuel costs, inflation, and interest rates are all likely to feel the impact. For UK businesses already under pressure, this creates a tougher environment for planning, investment, and cash flow management.

Oil Prices Are Rising Again

With tensions disrupting key trade routes and oil supply from the Middle East, Brent crude has surged past $100 a barrel.

That rise won’t stay confined to the headlines. It will feed through to logistics, energy bills, and the cost of materials across sectors. If your business relies on transport, imports, or energy-intensive operations, costs could climb quickly.

A Second Wave of Inflation?

Energy costs are a major driver of inflation. When fuel and freight become more expensive, it affects everything from packaging to final delivery.

This comes just as inflation had started to stabilise. If price rises return, we could see tighter margins, subdued consumer spending, and further pressure on wage expectations.

No Relief from Interest Rates

Many businesses were hoping to see lower interest rates this summer. That now looks less likely.

If inflation picks up again, the Bank of England may delay cuts or keep rates higher for longer. Borrowing will remain expensive, and access to working capital could tighten.

What Can Businesses Do?

You can’t control the global situation—but you can stay financially flexible.

• Review operating costs now, and factor in higher energy and shipping prices.
  
• Delay major cash outflows where possible, and consider whether leasing equipment could help you hold onto capital.
  
• Stay in touch with lenders and revisit your funding strategy if interest rates stay higher into the second half of the year.
  
• Build contingency into your pricing and cash flow plans, especially if your costs are sensitive to oil or energy markets.
  

The Bottom Line

Events like this remind us that resilience isn’t about predicting every change—it’s about staying agile when they arrive.

At Buckingham Leasing, we work with businesses to keep their finance flexible—so they can navigate uncertainty without losing momentum.

If you’d like to talk through how we can support your strategy, we’re here.