By Sam Tabahriti and Sarah Young
LONDON, March 9 (Reuters) – Britain wants major economies to agree to release emergency oil reserves as the escalating Iranian crisis sends energy prices soaring and increases the risk of higher inflation, finance minister Rachel Reeves said on Monday.
British borrowing costs have soared since the conflict erupted more than a week ago, and by more than those of other European countries and the U.S., as investors fear that surging oil and gas prices will stoke already stubborn inflation and require the government to borrow more.
Prime Minister Keir Starmer warned that a prolonged crisis would hurt the economy, on a day when short-dated British government bond prices were at one point on track for their sharpest daily fall since the market crisis that brought down his Conservative predecessor, Liz Truss.
UK seeks to limit economic hit from Iran as borrowing costs jump
