"The closure of the Strait of Hormuz, a critical chokepoint for global oil, has triggered the largest supply shock in the oil market's history, impacting economies worldwide."
"Matt Swannell, chief economic adviser to the Item Club, stated that consumers' spending power will be squeezed, affecting companies' investment plans amid a less certain global economic backdrop."
Britain's small and medium-sized businesses are facing significant challenges due to the Middle East oil shock, which may lead the UK economy towards a technical recession. The Item Club forecasts GDP growth to drop to 0.7 percent in 2026, down from 1.4 percent last year. The closure of the Strait of Hormuz has caused the largest supply shock in the global oil market's history. This situation is expected to squeeze consumer spending power and hinder investment plans for SMEs already struggling with tight margins.
Read at Business Matters
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