OECD cuts the UK’s 2026 growth forecast to 0.7% from 1.2%, the sharpest downgrade in the G20, blaming fallout from a Gulf crisis linked to US policy. It warns of higher inflation and tougher headwinds for Britain.
UK motorists have paid an extra £307m as petrol prices jump, driven by a Middle East crisis pushing crude above $100 and threatening key shipping lanes. The chancellor warned of a “significant” economic hit but announced no new relief for households, with pump prices around 146.4p a litre.
Trump paused planned military action, citing ‘productive conversations’ toward resolving hostilities. Tehran denied any talks, accusing Washington of stalling. Markets reacted: shares rose, oil prices fell.
Ministers say the UK is safe from Iran’s long‑range missiles, rejecting Israeli claims that Britain could be hit. Housing secretary Steve Reed says defences are in place and there is no official assessment that Iran can, or intends to, target Europe.