British Chancellor of the Exchequer, Rachel Reeves, has warned that the country's budget outlook is at risk from the ongoing conflict in the Middle East. Despite references to geopolitical uncertainty in her speech, Reeves maintains that her plan is the right one. The Office for ‌Budget Responsibility (OBB) has warned of significant impacts on global and UK economies if the surge in oil and gas prices is sustained in the coming months. This could erode Reeves' headroom against meeting fiscal rules. Prime Minister Keir Starmer's grip on Downing Street was weakened last week when his Labour Party lost a safe parliamentary seat, and his next test will be local elections in May.