One of those places stood on York Road in Peterlee.

The Argus Butterfly became, during the late 1960s and early 1970s, one of County Durham’s most talked-about live music venues.

For a few remarkable years, it drew some of the most influential bands of a generation to a town that many would never have expected to sit on the rock ‘n’ roll map.

In its heyday, the venue managed to secure performances from the likes of Led Zeppelin, Jethro Tull, Deep Purple, Thin Lizzy, Genesis and Mott the Hoople.

Pink Floyd also appeared during that golden era, as the progressive and hard rock scenes began to take shape across Britain.

While there may have been larger venues elsewhere in the North East, The Argus Butterfly had something else: atmosphere.

Jethro Tull’s Ian Anderson (Image: James Manning/PA Wire)

For many local music fans, the magic of The Argus Butterfly was not just in the names on the posters, but in the intimacy of the performances.

Before global fame, platinum records and worldwide tours, bands such as Led Zeppelin were still building their reputations, and Peterlee was one of the stops along the way.

On March 23, 1969, Led Zeppelin took to the stage. Just weeks earlier, they had released their debut album. Within a year, they would be firmly established as one of the biggest rock bands in the world.

Deep Purple played on February 23, 1969, while Jethro Tull appeared on March 8, 1968, during a period when British rock was evolving at pace, blending blues, psychedelia and progressive influences.

Other confirmed performances included:

• November 9, 1969 – Mott The Hoople
• June 11, 1972 – Genesis
• July 16, 1972 – Thin Lizzy

One local who remembers those formative years said online: “I started going as a bairn in 1967/68. The bands were on Sunday nights.

“I saw Free, Led Zeppelin, Jethro Tull and Family (who were a very big draw up here at the time) and a few others that I’ve forgotten.”

Sunday nights at The Argus Butterfly became something of a ritual for music fans across the region.

Martin Chambers, Ian Hunter, Pete Overend Watts, Verden Allen and Mick Ralphs of Mott The Hoople (Image: Ian West)

Although it is remembered primarily for its rock credentials, The Argus Butterfly was more than a one-genre establishment.

It hosted jazz and folk clubs, reflecting the musical diversity of the era, and also provided space for community events, including tap dancing and local gatherings.

After closing as The Argus Butterfly, the building went on to take various forms.

It later became The Tree of York Road and, more recently, housed the restaurant How Do You Do.

To passers-by today, there is little to suggest that the site once pulsed with the sound of future rock royalty. No roaring amplifiers. No packed Sunday night crowds. No rising stars on cramped stages.

Yet for those who were there, the memories remain.

The story of The Argus Butterfly is a reminder that the great chapters of British music history were not written solely in London, Manchester or Liverpool.

They were written in working men’s clubs, pubs and modest venues across towns like Peterlee.

The Argus Butterfly may no longer echo with guitar riffs and drum solos, but it’s still remembered online by people who were there at the time.

Man United U21s lost 4-2 against Real Madrid in the Premier League International Cup quarter-finals on Tuesday night

Manchester United youngster Shea Lacey would have travelled to Dublin for the first-team training camp this week, but the decision was made to give him a start against Real Madrid.

Knowing the Under-21s would have a better chance of reaching the Premier League International Cup semi-final with Lacey in the team, Adam Lawrence said he would “sweet-talk” Michael Carrick to get him available.

Lacey nonchalantly converted a penalty like he was playing in a park, evoked a gasp from the crowd with a backheel volleyed pass and drew Madrid’s players in to win fouls. That was just in the first half.

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There was a decent Easter holiday crowd at Old Trafford to watch the U21s take on Madrid. Lacey looked excellent in two first-team cameos in January, meaning he was the main attraction on show, but Lawrence fielded a strong team with the likes of Chido Obi and Jack Moorhouse given starts.

“Can you perform at the elite level and make the difference? Because we feel that he can,” said Lawrence of Moorhouse during an interview with the Manchester Evening News at Carrington last week.

Moorhouse responded by opening the scoring against Madrid, gliding beyond the defender and rifling his shot into the top right corner. Madrid first-team goalkeeper Thibaut Courtois wouldn’t have saved it.

Ruben Amorim named Moorhouse in a handful of first-team squads last season and Michael Carrick named him on the bench in recent Premier League games against Everton and Crystal Palace.

You will struggle to find a better ball-carrying than Moorhouse. His ability to glide with the ball at speed to breeze beyond opponents makes him a unique option, and he can finish when given the opportunity.

Moorhouse is not training day-to-day with the first-team like Lacey. He is currently between the U21s and the senior side, meaning his next challenge is taking that next step to performing consistently.

Lacey has been promoted to the senior squad on a permanent basis due to a blend of his talent and consistency. He has looked more mature this season, having physically developed in the gym, and he scored the penalty against Madrid like a player at home at Old Trafford.

Darren Fletcher handed around 30 minutes to Lacey against Brighton in the FA Cup fifth round. He was a breath of fresh air down the wing, but was shown a second yellow card for throwing the ball in frustration.

The ordeal was a crushing blow for Lacey, who apologised for being sent off on social media, but it’s that kind of exposure that has helped him look more mature than his academy peers in youth games.

Why would Lacey be fazed by taking a penalty in an academy game at Old Trafford when he has played in the venue at full capacity?

Obi has been leapfrogged by Lacey in terms of first-team involvement, but it was the young striker’s pressing that won the penalty. United academy coaches have worked meticulously with Obi to improve his out-of-possession work, and the pieces have started to gradually fall together.

“When a coach is tough on players, or they spend more time with them, it means that they really, really believe in the player,” said Lawrence when asked about constant shouts at Obi during academy games.

Madrid were two goals behind within 15 minutes, but the word from those who observe Spanish football was that they had fielded a strong side themselves. They were not going to roll over, and the momentum shifted in their favour when Gabriel Castrelo made it 2-1 on the stroke of half-time.

The Reds failed to come out of the traps quickly when play resumed for the second half. Lacey was getting on the ball less often. And then Madrid inevitably equalised, this time through Bruno Iglesias.

The solo Madrid analyst fist-pumped in the press box as Iglesias celebrated. The school-age home crowd booed, and tried to encourage the red shirts to respond by chanting ‘UNITED, UNITED, UNITED’.

Nothing split the two teams across 90 minutes and extra-time was required. Lacey pleaded with Lawrence to stay on, but the U21 boss’ body language suggested the decision had already been made before the game.

It said a lot about Lacey’s character that he was desperate to stay on, not long after returning from a small knock, but there are guaranteed to be more games at Old Trafford for the Liverpool-born lad.

Madrid forward Jaime Barrosco scored a late winner when the ball kindly fell to him in extra time, and United’s players looked skyward as they trudged back for the restart. They had simply run out of steam, and their heads dropped again when Madrid made it 4-2 with two minutes remaining.

United had the most difficult quarter-final draw of the three English teams that qualified for the knockout rounds of the competition, and they came the closest to making it to the semi-final stage.

That’s not bad for an academy that Sir Jim Ratcliffe criticised in October. United’s new academy chief, Stephen Torpey, suggested Ratcliffe was referring to the academy facilities when he said standards had “slipped”, but it was an ill-informed, clear dig at the entire operation.

Not many youth teams in England can go toe-to-toe for 120 minutes with Real Madrid Castilla. United’s youngsters should be proud of their effort.

The popular Indian street food restaurant in Jesmond shared a photo on Facebook on April 4 with the caption: “Amazing to have the ‘Geordie Maradona’ himself, Elliot Anderson, in Dabbawal Jesmond last night.

“We’re dreaming of a permanent return home… make it happen.”

Dabbawal has built a reputation as a celebrity and footballer hotspot in Jesmond, with staff saying it offers “a lot of nooks and crannies” where players can enjoy some privacy.

The restaurant has previously posted about visits from Newcastle midfielder Sandro Tonali and TV presenter Declan Donnelly.

Newcastle fans call for Elliot Anderson return

The post quickly caught the attention of supporters, with several sharing their hopes that the Whitley Bay-born player could one day return to St James’ Park.

Anderson, affectionately dubbed the “Geordie Maradona” by fans for his creative flair and attacking instincts, came through Newcastle’s academy before making his Premier League debut in 2022, but he was sold in 2024 amid a scramble to comply with financial regulations.

Nottingham Forest’s ex-Newcastle midfielder Elliot Anderson (Image: Mike Egerton)

Paul Wilson wrote, “It would be fantastic to see you back home in black and white again,” while Jay Scott added: “If Tonali leaves we need to spend whatever it takes to bring him home.”

Another fan, David Wright, summed up the affection many on Tyneside still hold for the 21-year-old, saying simply: “He’s one of our own.”

Whether Anderson is set for a return remains to be seen, but his appearance in Jesmond has reignited fond memories

On June 30, 2024, Newcastle sold Anderson ahead of the financial deadline for Profit and Sustainability rules. Academy prospects count as ‘pure profit’ on the balance sheet.

Anderson did not want to leave his boyhood club, having graduated through Newcastle’s academy, but agreed to move to Nottingham Forest, where he has since earned a place in the England squad.

On November 26, 1923, a woman named Anne McCormack applied for a military dependent’s pension on the grounds of her husband, James McCormack’s death. He had been a soldier in the Irish citizen army, under the socialist and revolutionary leader, James Connolly. This group was committed to the establishment of a workers’ republic. Its members participated in the week-long armed insurrection of 1916 known as the Easter Rising.

James McCormack was shot in the head on the second day of the rising, April 26, 1916. Records held in the Military Service Pensions Archive show he died where he fell on Moore Lane, close to the General Post Office, the epicentre of the rising.

For many years following the establishment of the Irish state (today’s Republic of Ireland) in 1922, the focus of Irish historians, not to mention the general public, was on those, like James McCormack, who died for Ireland. Annual commemorations of the 1916 rising were focused on those executed by the British or killed in the fighting. But little attention was paid to those, like Annie, who survived.

Hundreds of thousands of people had their lives thrown off course as a result of personal injury, bereavement and trauma, while others had their material fortunes irreversibly altered. Since 2007, my research and that of many historians has revealed the high price of “living for Ireland”. Through publicly funded digitisation projects, for example the 1901 and 1911 censes, researchers have had access to details of births, deaths, marriage registrations and, more recently, military service pension files. This has enabled us to flesh out the lives of those who lived through and beyond the tumultuous Irish revolutionary period of 1916 to 1923.

Living impact

The pensions archive shows the impact of the revolution on the everyday life of people who survived it and went on to build a new state. It contains over 250,000 files relating the lives of over 80,000 individuals who applied for pensions as combatants or surviving dependants.

According to the McCormacks’ digitised marriage certificate, found in the Irish Genealogy online archive Annie, as she was known, married James only eight years before she was widowed with three young children. Records show that Patrick Drinan, a member of the newly established police force in Ireland, An Garda Síochána
informed the Irish Army that since 1916 Mrs McCormack was “in poor circumstances financially. She had three children to support out of her earnings which average roughly about 12/- per week.”

Drinan noted that Annie’s father, who like many elders, lived with his daughter, was in receipt of old age pension – the great financial boon introduced in 1908. The policeman also explained that Annie had been awarded £500 in compensation, in 1917, for the loss of her husband, by “the National Aid Fund”. This is probably a reference to the Irish National Aid Association and Volunteer’s Dependants’ Fund.

The association distributed funds entrusted to it by the leaders of the rising to support the families of those killed or executed. Annie’s husband had been earning £1 week at the time of his death, which was at the higher end of a worker’s salary. The sum she received from the fund points to the depth of the McCormacks’ Republican credentials. The widows of executed leaders of the rising received an investment of £1,500 and one-off grants of between £250 and £350.

Entrenched inequality

My research has looked at the inherent inequality of the male-breadwinner model of Irish society at the time, and how losses incurred during the revolution left female-headed households, often widows, in extremely vulnerable positions.

Annie was one of the relatively lucky ones. She was awarded a pension of £90 for the duration of her widowhood, along with £24 per child, until they reached the age of 18.

Despite this, her pension file documents how she struggled to keep her sons supplied with the schoolbooks required to complete their education. It is significant that she sought to give them the kind of education that would spare them a life of labouring like their father and grandfather had. A relatively small proportion of the Irish population managed secondary education prior to the late 1960s, when it became free, yet Annie kept her sons (for a while at least) in the prestigious Jesuit Belvedere College in Dublin.

Balancing the books was an exhausting process for Annie. Throughout 1927 her health deteriorated. This likely explains why she failed to notice that the army continued to pay her eldest son’s allowance three months after he turned 18.

On February 29, 1928, the Army Finance Office wrote to inform Annie that it had overpaid £5 1s 6d (£5.075) in relation to her eldest son. The sum had been deducted from her allowance.

Annie’s last action was to write to the army to explain how much distress and difficulty this deduction had caused her. On December 1, 1928 she died at the age of 45 from tuberculosis, then endemic in Ireland

Her death certificate reduced her to the widow of a labourer. This is testimony to a life of difficult living conditions, poor nutrition and stress. The Ireland her husband James died for did not turn out to be the workers’ republic that the Irish Citizen Army had fought for, nor did the land of equal opportunities promised in the 1916 Proclamation of Independence transpire.

There are two subsequent letters in Annie’s file that reveal the enduring legacy of loss. In 1936, her youngest son wrote to ask for help finding a job. And nearly two decades later, in 1953, her eldest son wrote to remind the state of how losing his parents had reshaped his life: “My father James McCormack … was killed in action 1916 CA for which my mother receaved (sic) a pension until she died in 1927. I was 18 years of age then, and had to support two younger brothers 16 years and 14 years respectfully as her pension died with her. I was the only support or home, and got no help of any kind.”

For most of us, deep-fried food is off the menu, save for occasional treats. High-calorie, high-fat and potentially laced with carcinogens, we try to ignore the siren call of the chip shop.

But the air fryer claims we can have our chip butty and eat it, promising to “fry” food without the fat. “Air-fried foods have the traditional crunch and classic texture of perfectly fried foods, but you can enjoy them without the guilt,” gushes one recipe book. It’s a seductive thought.

But is it true? Not all foods turn out tempting after a spell in the air fryer, and some ingredients are transformed, quite simply, into mush. I’ve learned this the hard way after trying it all in my own Wonder Oven, which I most frequently use to produce “roasting tin” meals: a tray of vegetables, perhaps a bit of meat or fish, baked until the edges are caramelised and the flavours jostle together.

Here’s what you need to know to avoid a dinner disaster.

Roast potatoes

Cut floury potatoes into chunks, parboil, then shake them. Allow to dry and drizzle with a little oil. Air-fry for about 25 minutes on the highest setting, turning twice, until golden and crisp.

Leftovers

As long as they don’t contain too much sauce, leftovers are often better reheated in an air fryer than in the microwave. They regain their crisp edges rather than turning soggy.

Risotto

If you have an air fryer with a paddle, such as the Tefal ActiFry or the De’Longhi MultiFry, it will have a solid base rather than a rack, meaning you can cook more liquid dishes, including a proper stirred risotto.

Fish

The small space means it won’t dry out, and smells are contained. Rub lightly with oil or pané with breadcrumbs (dust first with flour, then coat in beaten egg and breadcrumbs), and air-fry until crisp and golden.

Chicken

It turns crisp while staying juicy, though it’s worth checking with a digital thermometer that it has reached 74C before eating. Rub with your choice of seasoning and cook for 9 to 10 minutes per side.

Roasted root vegetables

Cut into chunks, toss with oil, salt and smoked paprika, and cook for 20 to 25 minutes. Add chunks of onion or leek after 10 minutes, as these darken quickly.

Kale chips

Spray trimmed leaves with olive oil and sprinkle with salt. Lay in a single layer and cook for 4 to 5 minutes at 190C, shaking the pan after 2 minutes. Leave to cool and crisp on a rack while you cook another batch.

Deep-fried foods

You can make good oven-baked versions, but don’t expect the thick crust or unctuous quality of food cooked in hot oil.

Battered foods

Wet batters will drip off before they have a chance to set.

Cheese

Fresh cheese will slide around, so even in a toastie you need to weigh it down, secure it with a toothpick or use frozen slices.

Doughnuts and churros

You can bake a bready dough in some air fryers, but runny doughs and churros are a non-starter.

Leafy greens

Spinach and chard tend to turn to mush.

North Yorkshire Police is appealing for information after a person was assaulted in a York city centre street in the early hours of yesterday morning (Monday, April 6).

It happened in Church Lane, near Low Ousegate, at approximately 12.46am, with one victim receiving head injuries in the attack.

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They received medical treatment for their injuries and were discharged from hospital later that day.

A suspect was arrested at the time of the incident, but has since been released pending further enquiries.

A spokesperson for the force said: “We are particularly interested in speaking to two witnesses who were in the area at the time.

“During the time of the incident, they were stood on Low Ousegate. One witness was said to be wearing a silver glitter dress and the other witness was wearing a long blue coat.”

If you can help the investigation, please email Peter.Maw@northyorkshire.police.uk, call North Yorkshire Police on 101 and ask for Peter Maw, or contact Crimestoppers anonymously on 0800 555 111 or via their website.

Please quote reference 12260060786 when passing on information.

The continuation of the programme unlocks a fresh phase of support for SME manufacturers, combining expert advice, leadership training and digital skills with match-funded grants of up to £20,000.

Together, these interventions are designed to boost productivity, drive innovation, create high-value jobs and support progress towards net zero.

Made Smarter Yorkshire is a government-backed, industry-led programme delivered by South Yorkshire Mayoral Combined Authority in partnership with York and North Yorkshire, Hull and East Yorkshire, and West Yorkshire combined authorities.

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Since launching in 2021, the programme has engaged with more than 1,250 manufacturers, helping them take practical steps towards digital adoption.

To turn those plans into action, more than 200 businesses have received intensive technical support alongside over 100 capital grants, worth £1.4 million, to invest in technologies such as automation, robotics, AI, additive manufacturing and data-driven systems.

Alongside technology adoption, leadership and workforce development have played a central role. Digital Leaders and Digital Champions programmes have built capability at both strategic and operational levels across almost 115 businesses. Meanwhile, 37 university students have supported real-world transformation projects through digital internships, helping companies embed new skills and accelerate change.

Jessica Armitage, Made Smarter Programme Manager (Image: SYMCA)

Jessica Armitage, Programme Manager for Made Smarter Yorkshire, said: “This new wave of funding is a significant boost for Yorkshire’s manufacturing community. Over the past four years, we have demonstrated what is possible when SMEs are given the right combination of advice, skills and technology support.

“The continuation of the programme gives businesses the confidence to plan ahead, invest in their future and scale with purpose. We are excited to support the next wave of manufacturers to unlock productivity, build resilience and drive long-term growth across the region.”

Mike Pennington, Business Relationship Manager for York & North Yorkshire at Made Smarter, said: “Across York and North Yorkshire, from our coastal towns to our rural communities and city centres, manufacturing plays a vital role in supporting jobs and local prosperity. This new phase of Made Smarter funding means more businesses can get the digital support they need to grow, innovate and strengthen their future.”

Made Smarter gives manufacturers a clear, supported route into digital transformation, starting with an expert assessment and a tailored roadmap to guide investment and implementation.

Sheffield, UK (Image: Monty Rakusen)

From there, businesses can access specialist technical support from RTC North, alongside leadership development, workforce training and digital internships delivered by Sheffield Hallam University. Eligible companies can also unlock match funding of up to 50 percent, with grants of up to £20,000 available to accelerate technology adoption.

To learn more visit Made Smarter Yorkshire or contact your local Business Relationship Manager directly.

Oil prices plummeted and U.S. stock futures surged after President Donald Trump announced he would hold off on his threat of devastating attacks on Iran.

U.S. crude oil futures fell more than 15 percent, while futures for the S&P 500 jumped 2.2 percent by 8:05 p.m. ET, and Dow futures rose 930 points or 2 percent.

President Trump’s decision, made late Tuesday, was contingent on Tehran agreeing to a two-week ceasefire and the reopening of the Strait of Hormuz.

He had previously threatened strikes on Iranian bridges, power plants, and other civilian targets. Iran’s Supreme National Security Council accepted the two-week ceasefire, with its foreign minister confirming passage through the strait would be allowed for the next two weeks under Iranian military management.

Futures for U.S. crude oil sank 14.7 percent to $96.27 a barrel, while Brent crude oil, the international standard, dropped 14.4 percent to $93.48. The price remains well above where it was at the start of the war.

Meanwhile, as trading in Asia got underway, Japan’s Nikkei rose more than 4 percent and South Korea’s Kospi gained 6 percent.

Earlier, U.S. stocks swung sharply during regular trading as uncertainty about the war with Iran increased after Trump had threatened that a “whole civilization will die tonight, never to be brought back again” if Iran does not meet his deadline at 8 p.m. Eastern time to open the Strait of Hormuz.

The S&P 500 fell as much as 1.2 percent but stocks rallied at the end of trading after Pakistan’s prime minister urged Trump to extend his deadline for another two weeks and asked Iran to open up the strait for the same amount of time.

The S&P 500 erased all its losses and ended with a modest gain of 0.1 percent. The Dow Jones Industrial Average dipped 85 points, or 0.2 percent, and the Nasdaq composite added 0.1 percent.

They’re the latest swings to hit financial markets since late February because of deep uncertainty about when the fighting may end.

Oil prices were likewise shaky. The price for a barrel of benchmark U.S. crude to be delivered in May briefly climbed above $117 before settling at $112.95.

Oil prices have spiked because the war has snarled the production and transportation of crude in the Persian Gulf. Much of that oil exits the gulf through the Strait of Hormuz to reach customers around the world, but Iran has blocked it to enemies.

The worry in markets has been that a long-term disruption will keep oil prices high for a long time and send a painful wave of inflation crashing through the global economy. Trump kept traders on edge by making a series of threats to blow up Iranian power plants only to delay several times.

The average price for a gallon of regular gasoline across the United States has leaped to $4.14, according to AAA. It was below $3 a couple days before the United States and Israel launched attacks to begin the war in late February.

In the bond market, Treasury yields eased on word of a potential cease-fire. The yield on the 10-year Treasury fell to 4.24 percent from 4.30 percent earlier Tuesday.

That’s still well above its 3.97 percent level from before the war, and the rise has pushed up rates for mortgages and other loans going to U.S. households and businesses, which slows the economy.

Sleeping can be an uncomfortable experience as your bump grows bigger in the second and third trimesters, but the best pregnancy pillows can help you get a little more shut eye in the months leading up your baby’s arrival.

Longer in length than a normal pillow, pregnancy pillows are designed to support the changing shape of a pregnant woman’s body. There are hundreds available online, but together with the help of Rachel Fitz-Desorgher, a baby and parenting expert, we’ve selected our top 11.

They range in price from £27 to £159 and we’ve covered brands from Cushy Puff and Bbhug me to Silentnight and Simba. Our full reviews of each are below, followed by an FAQ section on how to use them, but if you’re in a hurry, here’s a quick look at our five of our favourites:

The best pregnancy pillows: At a glance

How to choose the best pregnancy pillow

When you start searching for the best pregnancy pillow you might feel overwhelmed at the amount of choice available. Fitz-Desorgher says the key types are U-shaped and C-shaped. It’s also worth looking for a pillow with cooling properties, to help with night sweats.

“A U-shaped pillow can be great for pelvic girdle pain,” Fitz-Desorgher says. “It gives that essential full-leg support as well as comfortably hugging the back. And, of course, there is no need to shift it when you turn over.”

C-shaped pillows can be more flexible. “Bend and shape it around you to support whichever bits of your body are crying out for a little help,” Fitz-Desorgher says. “Some pillows concentrate more on the bump and back whilst others cater more for hips and legs. Few do it all, so be prepared to supplement a little with a regular bed pillow where needed.”

Any pregnancy pillow is supposed to bring your limbs back into alignment and take the strain off the ligaments supporting the heavy tummy and breasts. Fitz-Desorgher explains: “How you place and wrap the pillow depends on where the aches are. An aching back needs a bit of oomph right in the lumbar region of the spine, while a woman struggling with pelvic girdle pain needs support between the full length of her legs, from thigh to ankle to keep them parallel and hip width apart all the way down.”

How we test pregnancy pillows

The war in Iran is affecting the cost of living around the world. In the UK, it is leading to higher energy prices, weaker economic growth and a more expensive future.

It may seem odd that fighting in the Middle East could have such a profound affect on household finances in the East Midlands (and everywhere else in the UK). But since the conflict began on February 28 2026, banks and building societies have withdrawn over 1,500 mortgage products from the UK market.

For many borrowers, especially first-time buyers and those coming off fixed-rate deals, the prospect of cheaper borrowing has quickly faded.

Mortgage rates have started to rise again, with two-year fixed rates increasing from around 4.8% to about 5.5%. For a borrower with a £200,000 mortgage over 25 years, this would mean an increase of £90 in monthly payments, adding close to £1,000 a year to household costs.

So how exactly does a war in the Middle East feed through to the cost of borrowing in the UK?

The biggest effect comes from energy. The conflict is directly affecting oil production in a region that accounts for roughly one-third of the world’s supply (and 20% of its liquid natural gas).

Energy costs affect almost everything, from transport and food to manufacturing and building materials – not to mention household heating and electricity bills.

But the impact is not limited to energy prices. The Iran war has also disrupted global fertiliser supplies, with prices rising sharply due to supply bottlenecks in the Middle East – a major global hub of fertiliser production and exports. Higher fertiliser prices increase the cost of producing food.

As a result of these kinds of rising costs, UK inflation is now expected to reach around 4% this year, up from a previous estimate of 2.5%.

This is a big problem for the Bank of England, which wants to keep the rate of inflation under control at around 2%. When energy prices rise and push inflation higher, the Bank is less able to cut interest rates. It may even have to increase them.

Another problem for borrowers in the UK is the effect on government bond markets.

UK government bonds (commonly known as “gilts”) are a form of government debt. Investors effectively lend money to the government, which pays it back with interest (the yield). Because these yields act as a benchmark for borrowing costs across the financial system, an increase in gilt yields raises commercial banks’ funding costs, which are then passed on through higher mortgage rates.

In recent weeks, UK gilt yields have climbed sharply as investors have revised up their expectations for inflation and interest rates.

For the Bank of England, rising gilt yields signal that financial conditions are tightening and inflation risks may be building, making it less likely that interest rates will be cut any time soon.

Before the conflict, financial markets were expecting a gradual decline in interest rates during 2026. Now, they are pricing in an increase in the Bank’s base rate by the end of 2026.

For mortgage borrowers, this shift is critical. When banks and other lenders set their mortgage rates, they take into account where they expect interest rates to be in the future.

UK vulnerability

While these global economic forces are affecting many countries, the UK is particularly exposed – in part because its economy was already growing very slowly.

The UK is also heavily exposed to global energy markets. It imports around 44% of its energy, particularly natural gas, making it more vulnerable to global price shocks. So, when international energy prices rise, the impact feeds through more quickly into domestic inflation.

This effect is less pronounced in more energy self-sufficient economies such as the US and Norway, which are major energy producers. In contrast, expectations of UK economic growth have been downgraded sharply, reflecting both its reliance on energy imports and underlying economic fragility.

For many households, the combined effect is significant. If financial markets expect the Bank of England to raise interest rates further, mortgage rates are also likely to increase, as lenders price in these expectations when setting new deals.

On top of that, a weaker economy will also affect incomes. Even before the Iran war, slower economic growth was feeding through into slower wage rises, with signs of declining employment and reduced business activity. The Iran war is likely to intensify these pressures further.

Looking ahead, UK households are likely to face an unsettling combination of higher mortgage costs, weaker income growth and reduced job opportunities. At the same time, they continue to face persistent cost-of-living pressures from increasing energy and food prices.

Together, these pressures are likely to result in a sustained squeeze on disposable income. There is growing expectation that the energy crisis will last for some time. But even if the conflict ends tomorrow, its economic impact will persist.