Bank of England Governor Andrew Bailey says energy prices have largely settled back to pre-conflict levels following the Iran war, giving policymakers breathing room to evaluate the fallout on the UK economy.
The conflict, which erupted in late February 2026, sent Brent crude soaring from roughly $70 per barrel to peaks exceeding $100. UK wholesale gas prices surged approximately 75% as disruptions in the Strait of Hormuz rattled energy markets worldwide.
From spike to stabilization
By mid-June 2026, early reports of a US-Iran peace understanding helped relax some of the pressure that had built up over the preceding months.
Bailey acknowledged that oil prices remain somewhat higher than they were before the conflict began, but noted the recent declines are encouraging.
