Tesco boss issues food cost warning as Iran war 'creating uncertainty' for Brits

Tesco boss issues food cost warning as Iran war 'creating uncertainty' for BritsThe head of supermarket giant has added to concerns about the impact of the Middle East war on shoppers and the economyCommentsMoneyGraham Hiscott Business and Consumer Editor07:22, 16 Apr 2026Updated 07:25, 16 Apr 2026View 3 Images(Image: georgeclerk via Getty Images)The boss of Tesco pledged to do “whatever we can” to combat the threat of higher food bills in the wake of the Middle East war.‌Chief executive Ken Murphy said the war was “creating further uncertainty for consumers and the economy more broadly.” It came as Tesco announced annual sales rose 5.4% to more than £73billion, with operating profits edging up to over £3.1billion.‌Murphy added: "Over the last year, despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service."‌View 3 ImagesTesco boss Ken Murphy (Image: Parsons Media/Handout via REUTERS)READ MORE: UK households 'to suffer highest inflation of any G7 country over next 2 years'READ MORE: Fresh warning as Middle East meltdown set to hit high street stores hardIt follows reports that Britain risks facing shortages of chicken, pork and other supermarket supplies this summer if the Iran war drags on.‌Government officials are said to have drawn up emergency plans for a “reasonable worst case scenario” in the event of the closure of the key Strait of Hormuz leading to shortages of carbon dioxide.View 3 ImagesThere are fears the Middle East war could lead to a new spike in food prices (Image: DANIEL LEAL, AFP via Getty Images)CO2 is used to increase the shelf life of food such as salad , packaged meets and baked goods, and is also critical in the process of slaughtering nearly all pigs and more than two thirds of chickens. The gas is also used to make drinks fizzy.Article continues belowAccording to the Times, plans - codenamed “Exercise Turnstone”...