War in Iran to have greater impact on oil prices than invasion of Ukraine, ESRI warns

The research institute has also warned against cutting indirect taxes such as excise duties, which disproportionately impact higher income households 

The ESRI has warned that a more prolonged conflict would imply higher energy prices, leading to increases across a wide range of goods and services and dampening economic activity.

Rising energy prices in the wake of the war in Iran are likely to persist for some time and could be even greater than the 2022 price hikes following the war in Ukraine, the Economic and Social Research Institute (ESRI) has warned.

In its latest quarterly economic commentary, the institute also warned against cutting indirect taxes on oil and gas prices, recommending more targeted measures for households most in need.