Chancellor Rachel Reeves is facing mounting pressure to cancel a planned fuel duty increase scheduled for September as oil prices surge amid escalating tensions in the Middle East.

Oil prices have exceeded $100 per barrel this week following military strikes by the United States and Israel against Iranian targets, raising concerns about fuel costs for British drivers.

Reform UK has outlined proposals for how the government could offset the revenue lost by scrapping the planned fuel duty rise, though specific details of their funding mechanism were not disclosed in available reporting.

Nigel Farage has called on Reeves to reverse course on the fuel duty increase and implement discounted petrol prices for drivers instead. The calls come as pump prices are already rising due to the volatile oil market situation.

Reeves has defended her plans to proceed with the fuel duty hike despite the current price pressures facing motorists. The September increase had been announced as part of the government's broader fiscal policy.

The debate highlights the challenge facing policymakers in balancing public finances with cost-of-living pressures, particularly as geopolitical events continue to influence global energy markets.