UK Growth Forecast to Slow Amid Iran Conflict

The escalating Iran conflict is likely to have a significant impact on the UK economy in the second quarter of 2025, with economists forecasting a 'fairly marked slowdown' in growth.

This warning comes as businesses face rising costs and supply chain uncertainty, which could derail the recovery from the recent mild recession.

The main channels through which the Iran conflict will affect the UK economy are higher oil and gas prices, increased shipping costs, and supply chain delays, which raise costs for businesses and reduce household spending power.