The Iran war may dampen the UK's previously improving economy

Golden Ten Data reported on April 16 that in the weeks leading up to the outbreak of war in Iran, the UK economy grew rapidly, highlighting the significant impact that the Middle East conflict has had on the country's economic situation. The UK Office for National Statistics said on Thursday that GDP grew by 0.5% in February, far exceeding economists’ expectations of 0.1% and marking the strongest monthly growth data since 2024. However, the situation changed rapidly after the February 28 attack by the United States and Israel on Iran. That attack disrupted energy supply routes and disturbed global markets. The impact of this war on the UK will be stronger than on any other major developed economy, pushing up borrowing costs and putting even more pressure on the struggling government. Economists expect the inflation rate to soar to nearly double the Bank of England’s target, and forecasts for UK economic growth have already been revised downward. According to the “Resolution Foundation”, the energy shock will reduce the income of ordinary households by about £500 (approximately $673).