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Reeves arrives at IMF with little leeway to prove its UK downgrade wrong

UK downgrade wrong The Iran war is bad news for the global economy. But for some countries, the unfolding conflict is having a bigger impact

How the Iran war is hitting the UK

UK economy is “particularly badly exposed to the Iran shock as a big energy importer with weakly anchored inflation expectations and an already soft labour market”. For many people still recovering from the energy inflation

UK steps up plans for potential shortages caused by Iran war

impact on our economy and domestic security as a result of the conflict." Last week, [the International Monetary Fund (IMF) predicted](https://www.bbc.co.uk/news/articles/c3v670qwz97o) the energy shock from the Iran war would hit the UK

Interest rates expected to be held as uncertainty over Iran war continues

UK and global economies. Analysts are widely predicting the benchmark rate will be left unchanged owing to strong signals from the Bank that it will take time to assess the impact of conflict

US war on Iran was a 'mistake', says Reeves

Iran could plunge the global economy into recession, with the UK set to be the hardest hit of the world's advanced economies**.** Reeves said she was "not convinced that this conflict [had] made

Bank of England boss tells BBC he won't rush interest rate rises

conflict. Bailey said the Bank of England was taking into account the IMF's "serious advice". Before the US-Israeli attacks on Iran six weeks ago, the Bank of England was widely expected to lower

UK inflation rate rises to 3.3% in March after Iran war pushes up fuel prices

impact of the Middle East conflict on the cost of living in the UK. Inflation is now expected to be higher this year due to the war and higher energy costs could also slow down

UK faces £35bn hit and risk of recession this year over impact of Iran war, thinktank warns

impact of Iran war, thinktank warns Britain is facing a £35bn economic hit and the risk of a recession this year as the fallout from the Iran war adds to the pressure on Keir Starmer

EU faces ‘China shock’ as EV imports drive Beijing’s record surplus with bloc

UK, Norway and Switzerland are included, Europe accounts for 42% of Chinese sales of EVs, [which have seen a 50% surge in March](https://www.theguardian.com/environment/2026/apr/20/electric-car-ev-sales-mainland-europe-petrol-prices-iran-war) in the wake of the Iran war. Merics, which

'Bit of pain' worth long-term security from Iran, Bessent tells BBC

impact on consumers would be less severe. Oil has risen close to $120 during the Iran conflict but has since fallen back, although it remains above pre-war levels, and [on Tuesday, a barrel

Starmer will not be swayed by Trump’s ‘small and petty’ insults, says Lammy

Iran, David Lammy has said, as he insisted the UK would not get dragged into the conflict. The deputy prime minister argued the US president should be able to “disagree agreeably” with allies rather than

What's happening to the UK economy and how does it affect you?

Iran war, which is having a huge impact on the global economy. When the Labour government took power in July 2024, it said growth was its top priority. Across 2025 as a whole, UK

Lloyds takes £151m hit from Iran war as it forecasts rise in UK unemployment

Iran war as it forecasts rise in UK unemployment Lloyds has warned that the economic fallout from the Middle East conflict could cost it £151m amid rising unemployment and inflation and a slowdown

US talks between Lebanon and Israel end – as it happened

UK, Australia and others have condemned the killings of UN peacekeepers in [Lebanon](https://www.theguardian.com/world/lebanon) and called for an end to hostilities.** “Australia, Brazil, Canada, Colombia, Indonesia, Japan, Jordan, Sierra Leone, Switzerland

Barclays cuts back risky lending after £228m hit from UK mortgage firm MFS

Iran war on 28 February. Venkatakrishnan warned of a broader impact of the rise in energy prices if the war dragged on. “Higher oil prices and the longer they go on will have an impact

UK firms in ‘critical financial stress’ jump by a third as costs rise, report finds

impact of the Middle East conflict. Hospitality and leisure firms have been faring particularly badly because of shaky consumer confidence, and rising taxes and staff costs, according to research by the restructuring company Begbies Traynor

Middle East crisis live: US claims blockade has ‘completely halted economic trade’ into Iran, as Trump hints at return to talks in Pakistan

UK prime minister Keir Starmer and French president Emmanuel Macron will co-host a summit in Paris on Friday focused on efforts to reopen the strait of Hormuz,** Downing Street said. A spokesperson said

Bank bosses called to meeting with Reeves over impact of Iran war on UK economy

impact of the crisis in the Middle East triggered by the US and Israel’s attacks on Iran. The chief executives of HSBC, [Barclays](https://www.theguardian.com/business/barclay), Lloyds, NatWest and Santander have been asked

Why and how is US blockading Iranian ports in Strait of Hormuz?

impacting places like Dubai, Bahrain, Kuwait and Saudi Arabia The US Navy Commander's handbook on naval operations law from 2022 defines a blockade as a "belligerent operation to prevent vessels and/or aircraft

Reeves steps up criticism of Trump’s Iran war, branding it a ‘mistake’

economy. Entering into the war without clear goals had also laid the foundations for a more protracted conflict that risked setting back progress to end Iran’s nuclear ambitions, she added. “They don’t have