As this morning’s company updates show, the British high street - already in a perilous state - is facing an almighty hit from the Iran war.

A worrying report from the British Retail Consortium shows consumer confidence in both the economy and personal finances has ‘collapsed’.

Expectations for the state of the economy over the next three months worsened significantly to -53 in March, down from -30 in February.

The FTSE 100 is down 0.63 per cent, or 63.58 points, to 10,043 as Trump's attempts to de-escalate the war with Iran fall short.

Any hopes of a Middle East ceasefire or longer-term peace plan seem increasingly distant amid conflicting messages from the US and Iran.

The outspoken Currys CEO Alex Baldock will leave the retailer after eight years.

Baldock has been vocal in his criticism of the Government's policies, namely business rates and employment rights.

While Currys' performance in the UK has compared favourably with other retailers, Baldock previously warned of 'bumpy' consumer confidence.

Today, he said: My eight years at Currys have been simply the best of my career, and I'll always be a loyal Currys customer, advocate and shareholder.

'I'm immensely grateful to the thousands of amazing colleagues I've been privileged to work with, and proud of what that team is building, a world class Currys for colleagues, customers and shareholders.

Currys' next chapter can be its most exciting yet. But it's time for someone else to steer the business there, and time for me to move on to a new opportunity.

'I'll be here to ensure our progress doesn't skip a beat and to ensure a smooth transition to my successor.

Consumers will need to brace for another round of price hikes if the war in Iran is prolonged, the boss of Next has said.

Lord Simon Wolfson said the conflict will cost Next £15million should it last for three months, which will have a knock-on effect on prices and consumer demand.

Co-op has swung to a loss after it took a significant hit from last year's cyber attack.

The retailer's IT networks were hacked last April, which resulted in payment problems, product shortages, and the loss of customer data.

The retailer also said CEO Shirine Khoury-Haq would step down at the end of the month.

The worrying inflation figures are just the latest to betray just how fragile the UK economy was as war in the Middle East erupted, writes Hugo Duncan.

Inflation on the CPI measure already stood at a punishing 3 per cent in February – before the conflict sent oil and gas prices soaring and fuelled fears of a fresh cost-of-living shock.

And inflation is far from the Chancellor's only headache.

The FTSE is up more than 1.33 per cent to near 10,100 points and is on course for its biggest increase for more than two weeks.

Brent crude is back at $100 a barrel.

Businesses have been dealt another blow as forecasts suggest energy bills could soar by up to 80 per cent.

Energy consultancy Cornwall Insight said electricity bills for businesses have increased by between 10 and 30 per cent since the start of the war. Gas prices have seen steeper increases of between 25 and 80 per cent.

An average 12-month electricity contract for a small commercial business would now cost an average £578,000. For gas, bills have reached just over £1.02million a year, a 60 per cent increase.

Cornwall Insight’s Jacob Briggs said: ‘For some firms, this could mean the difference between investing in growth this year or shelving their plans entirely, and for others, high bills could force some very difficult economic decisions.

‘There is no real safety net for businesses when the wholesale market spikes. Households at least have the price cap to slow the impact; many businesses face the market as it stands today.’

After Bank of England chief economist Huw Pill yesterday insisted ‘the fog of uncertainty’ should not stop it raising interest rates, it was the turn of European Central Bank chief Christine Lagarde to make her thoughts clear today.

And it doesn’t make great reading for those hoping central banks will steer away from rate hikes.

‘We will not be paralysed by hesitation,’ says Lagarde.

Speaking in Frankfurt, she adds: ‘If the shock gives rise to a large though not-too-persistent overshoot of our target, some measured adjustment of policy could be warranted.

‘To leave such an overshoot entirely unaddressed could pose a communication risk: the public may find it difficult to understand a reaction function that does not react.’

And she goes on: ‘If we expect inflation to deviate significantly and persistently from target, the response must be appropriately forceful or persistent. Otherwise, self-reinforcing mechanisms would kick in and the risk of de-anchoring would become acute.’

The Institute for Grocery says food inflation could hit 8 per cent by the summer – piling pressure on family budgets.

The boss of Morrisons acknowledges that his customers are finding it tough going.

‘We know it’s tough for customers right now and we’re doing everything we can to offer them better value and give them more reasons to shop at Morrisons,’ says chief executive Rami Baitiéh.

‘We are watching current international events closely, alert to the impacts on consumer confidence and supply chains, and we will continue to do what we can to mitigate effects on our customers.’

The FTSE 100 is back above 10,000 after the Iran war wiped out all of its gains last week.

The index is up 1.07 per cent to 10,072, led by banks and miners.

Oil prices are down 5 per cent to $98 but remain volatile as potential peace talks are offset by ongoing Iranian strikes at US military bases.

The housing market appeared to be slowing before conflict in the Middle East erupted, according to figures from the Office for National Statistics.

The price of typical home was £268,000 in January – just 1.3 per cent higher than a year earlier.

That was the smallest increase since September 2024.