Energy crisis could wipe 35bn off UK economy even in best-case scenario

"The energy crisis triggered by the Iran war could wipe £35 billion off the UK economy even in the best-case scenario, a leading think tank has warned."

"A prolonged conflict in the region could plunge the UK into recession during the second half of this year, the National Institute of Economic and Social Research (Niesr) said in bleak new projections."

"The crisis in the Middle East has laid bare the fact that the UK remains highly exposed to global energy shocks."

"Even if hostilities ease rapidly, higher energy prices will leave households poorer, businesses facing higher costs, and the economy materially smaller than we expected only a few months ago."

The energy crisis triggered by the Iran war could result in a £35 billion loss for the UK economy, according to the National Institute of Economic and Social Research. Prolonged conflict may lead to recession in the latter half of the year. The UK is highly vulnerable to global energy shocks, and even a quick resolution could result in higher energy prices, impacting households and businesses. The ongoing conflict has already prompted warnings of slower growth and increased inflation, with potential interest rate hikes from the Bank of England.

Read at www.independent.co.uk