LONDON, March 9 - The British government is talking to international partners, and its central bank, to assess ways to limit the economic damage from the escalating Iranian crisis, warning that the longer it goes on, the worse it could get.

British borrowing costs have soared since the conflict erupted more than a week ago - by more than those of other European countries and the United States - as investors fear that surging oil and gas prices will stoke already stubborn inflation higher.