Rachel Reeves, the UK's Chancellor of the Exchequer, will unveil a package of cost-of-living measures on Thursday aimed at cushioning households from the fallout of the Iran war. The announcement comes as the British government moves to contain economic damage from geopolitical tensions that have rattled energy markets and shaken consumer confidence across the country.

Oil prices have climbed amid the Iran conflict, driving energy bills higher for UK consumers. Reeves' package is expected to address the squeeze on household budgets, though specifics remain sparse. Markets are already pricing in some degree of fiscal support, with government bond yields ticking higher as traders weigh the size and scope of the measures.

The government faces pressure to deliver something concrete rather than vague commitments. Rising energy costs and broader inflation fears have made cost-of-living relief politically urgent heading into the announcement. Investors will judge Reeves on whether the package matches the scale of the economic disruption the Iran war has triggered.