We examine the initial economic impact of the conflict in the Middle East.
03 Mar 2026, 2 min read
Key takeaways
- The conflict between the US, Israel and Iran has heightened risks to Middle East energy supply and triggered a repricing in global energy markets.
- The principal transmission channels to the UK economy are energy prices, financial market conditions and, to a lesser extent, transport and logistics disruption.
- Energy prices would need to remain elevated for several months, rather than spike briefly, to materially alter the UK’s macroeconomic outlook.
