US-Iran Conflict Costs UK Households £70.4 Billion
UK households face a projected £70.4 billion loss in real disposable income due to energy price spikes and stalled interest rate cuts from the US-Iran war.
The Centre for Economics and Business Research projects that UK households will lose an average of £2,400 in real disposable income by the end of 2027. This economic decline stems from the fallout of the war between the United States and Iran, which began on February 28.
The closure of the Strait of Hormuz has triggered higher energy costs and forced the Bank of England to stall expected interest rate cuts. These combined factors represent a total £70.4 billion hit to national household incomes. The Energy and Climate Intelligence Unit estimates that higher wholesale oil and gas prices have already added £9.8 billion to UK energy and road transport costs since the conflict started.
Consumer spending power faces further pressure as the regulator Ofgem has scheduled a 4% increase in the quarterly energy price cap for October.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play