Gas prices have spiked and stock markets indexes tumbled after an Iranian official said his country would “set fire” to anyone trying to pass through the key Strait of Hormuz shipping route.
As the conflict between Iran and the US and Israel continued, the UK gas price surged by more than 46%, following sharp gains on Monday pushing it to it highest price for three years.Brent Crude Oil climbed by more than 5% to just over $81 a barrel.
In the UK, the FTSE 100 index fell by 2.6% while stocks markets in France and Germany also dropped.
Investors are weighing the impact of the conflict on the global economy including what it could mean for inflation and interest rates.