Chancellor Rachel Reeves is set to cancel the planned September fuel duty increase as Britons face escalating energy costs driven by Middle East tensions. The move comes as Labour grapples with internal divisions over Brexit, with Andy Burnham's leadership bid under threat from Reform UK's growing appeal in a critical by-election.

The $110 Barrel: Oil Prices Double Amid Middle East Crisis

Brent Crude oil prices have surged to around $110 per barrel, doubling from previous levels, following renewed threats from former US President Donald Trump against Iran. The Strait of Hormuz, a crucial global oil supply route, remains effectively blocked, exacerbating the situation. According to the RAC, average petrol prices have climbed to 158 .24p per litre, with diesel reaching 186.15p, and further increases are anticipated later this week as oil costs continue to rise.

Labour's Brexit Divide: Burnham's Bid Under Fire

Labour faces internal divisions as a key London by-election approaches. andy Burnham, the Mayor of Greater Manchester and potential leadership candidate, faces criticism from Labour MP Wes Streeting, who publicly supported rejoining the EU—a stance seen as detrimental to Burnham's campaign in the Eurosceptic seat of Makerfield. Streeting's comments highlighted Burnham's Brexit reversal views, sparking tensions within the party.

Reform UK's Rising Appeal: A Threat to Labour's Unity

Reform UK polls continue to show significant support, raising doubts about Burnham's chances of winning, which some estimate at below 50%.. Despite Labour's sinking morale following poor local election results, Sir Keir Starmer visited Labour Headquarters, thanking staff and reaffirming his commitment to support any candidate challenging Reform UK. Deputy Prime Minister David Lammy acknowledged the party's internal strife, describing it as a 'spectacular own goal.' He warned, 'Some colleagues are lighting the match and standing in the petrol,' suggesting that failing to unite could trigger an early general election.

Government's Response: Monitoring and Support

A spokesperson for the Prime Minister stated, 'We are committed to reducing expenses for motorists who are facing higher costs due to the Iran conflict. This is why we extended the 5p fuel duty cut twice, now lasting until September, and why we will continue to monitor the situation. Chancellor Reeves maintains that a swift end to Middle East tensions is the best way to keep fuel prices stable. We will also make necessary decisions to support families with the cost of living and safeguard public finances.'