6:30 am, March 25, 2026
Inflation expected to remain at 3% before Middle East conflict sparks jump
Fresh figures are expected to show that UK inflation remained steady last month but households could face another ‘twist’ to the cost-of-living story in the months ahead due to war in the Middle East, according to experts.
The rate of Consumer Prices Index (CPI) inflation has been gradually easing back towards the Bank of England’s 2% target level since last summer.
Some analysts are expecting CPI to have held relatively steady in February, or dipped slightly, from the 3% level recorded in January.
Iran oil crisis has cost UK drivers £307m in higher fuel costs – analysis
The Iran oil crisis has cost UK drivers more than £300m in more expensive fuel, according to new analysis.
Motoring research charity the RAC Foundation said rises in pump prices since the conflict in the Middle East began on February 28 have led to motorists paying an additional £307m for petrol and diesel.
The average price of a litre of petrol at UK forecourts rising from 132.9p on February 27 to 146.4p on Monday, while diesel rose from 142.4p to 169.8p
Mercedes takes the next step in luxury with the Maybach S-Class
Mercedes has revealed the updated Maybach S-Class.
The new ultra-luxury version of Mercedes’ flagship limo gets a restyled grille and double-star shaped headlights, but it’s on the inside where the bulk of the changes are. There’s Mercedes’ new ‘Superscreen’, and dual 13.1-inch entertainment screens for the rear passengers.
Engine choices comprise a 4.0-litre V8 and a 6.0-litre V12. Prices will be revealed later.
The markets
The FTSE 100 closed higher on Tuesday, lifted by gains in oil majors BP and Shell, as investors await clarity over developments in the Middle East.
The FTSE 100 index closed up 71.01 points, 0.7%, at 9,965.16. The FTSE 250 ended down 110.89 points, 0.5%, at 21,135.77, while the AIM All-Share was up 0.67 of a point, 0.1%, at 714.09.
The pound was quoted slightly higher at 1.3394 dollars at the time of the London equities close on Tuesday, compared to 1.3390 dollars on Monday. The euro stood at 1.1591 dollars, higher against 1.1579 dollars. Against the yen, the dollar was trading higher at 158.82 yen compared to 158.79 yen.
Starmer to face MPs as planning to reopen Strait of Hormuz continues
The prime minister will face MPs on Wednesday as the UK works to develop a plan to reopen the vital Strait of Hormuz.
Sir Keir Starmer will undergo his weekly grilling at Prime Minister’s Questions a day after Rachel Reeves warned the economic impact of the Iran war could be ‘significant’.
Central to that impact is Tehran’s effective blockade of the Strait of Hormuz, a vital shipping route for oil and gas.
Trump administration offers 15-point ceasefire plan to Iran
The Trump administration has offered a 15-point ceasefire plan to Iran, according to a person briefed on the contours of the proposal, even as the US military is preparing to call up at least 1,000 more troops to supplement some 50,000 troops already in the region.
The plan was submitted to Iran by intermediaries from Pakistan, who have offered to host renewed negotiations between Washington and Tehran, according to the person, who told the Associated Press but was not authorised to speak publicly about it.
The New York Times reported earlier on Tuesday that the 15-point plan had been delivered to Iranian officials.
Tuesday on Car Dealer
FCA to announce motor finance compensation details on March 30
The Financial Conduct Authority (FCA) will announce details of its redress scheme on Monday, March 30, after markets close.
Dealers warned of changing buyer habits as new ‘challenger’ car brands grow – Cox Automotive
An influx of new car brands is reshaping the UK car market, with younger buyers leading a shift away from traditional manufacturers, according to new research from Cox Automotive.
Independent dealer The Essex Car Group collapses into liquidation
The Essex Car Group has appointed liquidators, according to notices posted in The Gazette and on Companies House.
MG opens new engineering centre and reveals market-first semi-solid-state battery
MG has opened a new engineering facility in Europe, while at the same time announcing a new semi-solid-state battery that can deliver a longer range and quicker charging times.
Lamborghini hits record sales in 2025 as margins come under pressure
Lamborghini has posted record sales and revenues for 2025, although operating income and margin has come under pressure compared with the previous year.
Out now: Issue 217 – Latest motor trade news, and we take a spin in the new Honda Prelude
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Weather
Windy and colder conditions bring a mix of sunny spells, cloud and heavy, sometimes thundery showers today, with snow on northern hills early on, reports BBC Weather.
Tonight, showers linger in parts of the northeast, Wales and southern England before clearing. It turns mostly dry with clear spells, though Scotland sees snow showers and temperatures drop.
