2026 Economic Warnings: Guardian Reveals Sharp Recession Risk Threatening UK with Billions in Losses Due to Iran War

 In Spring 2026, experts warned that the ongoing war in Iran and the closure of the Strait of Hormuz could drive the UK economy into a sharp recession, with potential losses of £68 billion. Estimates suggest unemployment will hit 5.8% while inflation spikes to 5% as oil prices approach $140 per barrel. The Bank of England may raise interest rates to 5.25%, further straining the housing market. With the IMF slashing UK growth forecasts to 0.8%, the 2026 economic outlook remains bleak unless a diplomatic solution reopens vital maritime routes.