Protracted Iran War Could Push UK Into Recession, NIESR Says

The UK could slip into recession later this year and be forced to hike interest rates aggressively to contain inflation if the Middle East crisis worsens, the National Institute of Economic and Social Research warned.

An adverse scenario where hostilities between the US and Iran resume and the Strait of Hormuz remains closed would deliver a significant hit to economic output and see inflation climb above 5%, the think tank said in a report published Wednesday.