Britain’s battle against rising prices has suffered a setback, with inflation accelerating as conflict in the Middle East drives a fresh surge in global energy costs.

Official figures show the Consumer Prices Index rising to 3.3 percent in March, up from 3.0 percent in February. The Office for National Statistics said the jump was driven primarily by fuel, which recorded its sharpest monthly increase in more than three years as oil markets reacted to supply disruptions linked to the war.

“Inflation climbed in March, largely due to increased fuel prices,” said Grant Fitzner, chief economist at the ONS. Petrol and diesel costs have risen in tandem with crude oil benchmarks, which spiked after hostilities in the Gulf region threatened key shipping lanes.

Finance minister Rachel Reeves said the conflict was inflicting economic pain on British households despite the UK not being a direct participant. “This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” she said.

Reeves has announced plans to increase the windfall tax on low-carbon electricity generators from 45 percent to 55 percent, arguing that exceptional profits should help shield consumers and firms from higher energy costs. However, she has so far resisted calls for direct subsidies or price caps on household energy bills, warning that such measures could prove expensive and distort the market.

The latest inflation reading places the UK on par with the United States, where annual price growth also stood at 3.3 percent in March, though the American rate rose more sharply from the previous month. Britain’s inflation remains higher than in the eurozone, where prices are increasing at 2.6 percent a year.

Energy markets have been roiled since the outbreak of war between the United States and Iran, which has disrupted flows of oil and gas through the Strait of Hormuz, a vital chokepoint for Gulf exports. While prices have eased slightly following a ceasefire extension, they remain well above pre-war levels.

Despite the renewed inflationary pressure, analysts expect the Bank of England to keep interest rates on hold at its upcoming meeting, wary of tightening policy into a slowing economy. The International Monetary Fund has cut its forecast for UK growth this year to 0.8 percent, down from 1.3 percent, citing the impact of higher energy costs and geopolitical uncertainty.