Hormuz Disruption Could Tip UK into Recession, Warns Daily Telegraph

The Strait of Hormuz is a vital waterway that connects the Persian Gulf and the Gulf of Oman, playing a crucial role in global energy supply chains.

A prolonged closure of this passage could have severe economic consequences for the UK, with a potential contraction of 0.2% in its gross domestic product (GDP) in 2027, according to The Daily Telegraph.

This scenario would result in negative economic growth for the first two quarters of 2027, meeting the technical definition of a recession.

The conflict involving Iran has already led to concerns about global oil supplies and liquefied natural gas (LNG) exports passing through this waterway, with approximately 20% of global oil supplies and around 25% of LNG exports using this route.