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UK Economy Stagnates Amidst Iran War Energy Shock Fears, Raising Growth Concerns
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UK Economy Stalls Amid Iran War Energy Shock, Raising Growth & Inflation Fears
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Firstpost
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13-03-2026, 14:04
UK Economy Stalls Amid Iran War Energy Shock, Raising Growth & Inflation Fears
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UK's GDP showed "no growth" in January, missing 0.2% expansion forecast, indicating a stalled economy since June 2025.
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The unexpected stall highlights structural vulnerabilities even before the energy price surge from the Iran conflict.
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Brent crude futures rose above $100 a barrel, intensifying concerns for the UK due to reliance on imported natural gas and weak economic momentum.
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Analysts warn sustained high energy prices could reduce 2026 GDP growth by 0.2 percentage points.
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Markets now price an 86% chance of an interest rate hike, fearing higher energy costs will reignite inflation despite weak GDP data.
Read Full Article on Firstpost in English
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