LONDON, April 13 (Xinhua) -- Surging energy prices triggered by escalating tensions in the Middle East are set to weigh on British households, with new analysis pointing to a deterioration in living standards as global oil markets remain volatile.
According to a report released Monday by the Resolution Foundation, the median working-age households in Britain are projected to be about 480 pounds (about 650 U.S. dollars) worse off over the current financial year than previously expected, as higher energy costs push up inflation and erode real incomes.
The think tank said typical household income, once forecast to grow by 0.9 percent, is now expected to decline by 0.6 percent, underscoring the broad impact of higher energy costs.
Global energy markets have been jolted by renewed geopolitical tensions. Brent crude futures surged 7 percent to around 101 U.S. dollars per barrel on Monday after U.S. President Donald Trump announced a blockade of the Strait of Hormuz following failed negotiations with Iran.
The strategic waterway, a key chokepoint for global oil shipments, has effectively remained closed since the conflict began, driving sharp gains in oil and gas prices and heightening concerns over inflation and global growth.
"Despite hopes for a sustained peace, the path of this conflict remains uncertain and energy prices remain well above pre-war levels, meaning many households face a decline in their purchasing power this year," said James Smith, the foundation's chief economist.
The Resolution Foundation has urged the government to accelerate plans for a "social tariff" to help cushion lower-income groups, particularly ahead of winter when energy demand is expected to peak. ■