What America’s strikes in Iran mean for employee financial resilience – and how HR can help

The recent US military strikes in Iran have sent shockwaves across global markets - and while the headlines focus on geopolitics, the ripple effects could soon hit your employees' wallets.

Tensions in oil-producing regions almost always lead to a spike in oil prices.

And with the UK still deep in a cost-of-living crisis, even small increases in the price of petrol, energy, and food could push more employees into financial hardship.

Here’s what HR teams need to know and how you can support employees before pressure turns into crisis.

1. Fuel and transport costs could rise

Most UK workers are still feeling the pinch at the pump.

If oil prices climb, commuting could become more expensive, especially for employees who travel by car, work shifts, or live in rural areas.

2. Energy bills remain stubbornly high

The energy price cap is due to fall on 1 July, but that won’t be much comfort to many employees.

Standing charges remain high, and energy debt continues to climb. If wholesale prices rise again due to global instability, bills could go up again and winter isn’t far off.

3. Inflationary pressure on food and essentials

Oil powers everything from tractors to transport.

So when oil prices rise, so do the costs of food and everyday goods.

For employees on tight or fixed budgets, another round of price hikes could stretch their resilience to breaking point.

Even before this latest crisis, more than one in three UK employees were already struggling to afford the basics, according to recent ONS figures.

Financial stress impacts productivity, increases absenteeism, and can lead to higher turnover.

And with wages still playing catch-up with inflation, many employees simply don’t have the buffer to absorb another price shock.

What’s more, employees may be reluctant to come forward.

Money worries are still taboo in the workplace, particularly for middle earners who may not realise help is available.

You can’t control global politics, but you can make a meaningful difference by building a culture of proactive financial wellbeing.

Here are three ways to support employees now:

1. Signpost support early

Make sure employees know what help is available - from fuel cost tips and budgeting tools to government support with energy bills.

Better yet, offer access to a financial wellbeing platform that brings everything into one place and personalises support.

2. Offer on-demand access to pay

Letting employees draw down part of their earned salary ahead of payday can help them cover essentials without turning to high-cost credit or loans.

It’s a proven way to boost resilience.

But you should also be aware that regular use could be a sign of deeper financial stress that needs addressing through longer-term support.

3. Create a safe space to talk about money

Normalise conversations around financial wellbeing.

Run drop-in sessions, share employee stories, and train line managers to spot the signs of money stress.

The conflict in Iran may feel like a world away, but the financial fallout could be felt on the shop floor, in the warehouse, and behind every office desk.

Now’s the time to step up your support.

The most resilient workforces are the ones that feel seen, supported, and equipped to weather uncertainty, wherever it comes from.