- Rachel Reeves is reportedly preparing to abandon a planned increase in fuel duty, responding to soaring costs linked to the ongoing conflict in the Middle East.
- The Chancellor had previously extended the fuel duty reduction until August 2026, but faced pressure to maintain it following the closure of the Strait of Hormuz.
- Iran's blockade of the Strait of Hormuz in March, a crucial oil route, has caused global fuel prices to surge, with petrol reaching 157.99p per litre.
- Abandoning the planned fuel duty rise is expected to cost £2.4 billion and is anticipated to be announced on Thursday.
- This decision comes amidst political turmoil for Sir Keir Starmer, who faces a leadership challenge after recent local election results, despite his plans for a multinational mission to reopen the Strait of Hormuz.
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