The US and Iran have engaged in a second day of airstrikes, with the conflict escalating rapidly. The US launched airstrikes against Iranian military targets on Wednesday morning, which were swiftly followed by Iranian missile attacks on two US military bases in Iraq.
The US President, Donald Trump, has warned that further attacks are likely, tweeting that 'all is well!' despite the escalating situation. The Iranian government has vowed to retaliate against the US for the killing of top Iranian military commander Qasem Soleimani.
The UK Foreign Office has advised British nationals to exercise 'extreme caution' when travelling to Iraq, citing the risk of 'heightened military activity'. The UK government has also urged caution, with a spokesperson stating that 'the situation is fluid and unpredictable.'
The escalation of the conflict has sent shockwaves through the global economy, with oil prices rising sharply in response to the increased tensions. The price of Brent crude oil has surged to over $70 per barrel, a significant increase from its pre-escalation price of around $60 per barrel.
The impact of the conflict on the UK economy is likely to be significant, with the country relying heavily on imported oil. The UK government has been urged to take action to mitigate the effects of the price rise, with some calling for the introduction of a windfall tax on oil companies.
The conflict has also raised concerns about a wider conflict in the Middle East, with the US and Iran having significant interests in the region. The UK government has been working closely with its international partners to try and de-escalate the situation, but the prospects for a peaceful resolution appear increasingly distant.