Report warns oil shock from Iran conflict could push UK economy toward recession

Mon, 20 Apr 2026 21:21:00 +0200

A recent economic analysis warns that the United Kingdom could come close to entering a recession due to the impact of rising oil prices linked to escalating tensions or conflict involving Iran. The report highlights how disruptions in global oil supply can rapidly increase energy costs, which in turn raises expenses for businesses and households. Higher fuel and energy prices typically feed into inflation, reducing consumer purchasing power and dampening economic activity.

The UK, which relies heavily on imported energy, is particularly vulnerable to global oil shocks. As prices rise, industries such as manufacturing, transportation, and logistics face increased operating costs, often passing these expenses on to consumers. This chain reaction can slow demand, reduce output, and ultimately weaken overall economic growth. Analysts suggest that even a short-term spike in oil prices could be enough to stall the fragile recovery the UK economy has been experiencing.

The report also note