# UK faces weaker economic growth and higher inflation due to Iran war – OECD

By Dan Coatsworth — 2026-03-26

Dan Coatsworth, head of markets at AJ Bell, said: “Conflict in the Middle East could have damaging consequences for the UK economy and other parts of the world if the crisis is long-lasting.

“That’s the implication of a new report from the OECD.

“The sharp jump in oil prices and disruption to shipping routes threatens to feed into higher costs for consumers and businesses.

“The longer the Middle East crisis lasts, the bigger the potential economic hit.

“The UK’s GDP is already moving at a lacklustre pace as the government works through a plan of public finance strengthening first and economic growth second.

“The last thing Chancellor Rachel Reeves wants is for her growth plan to be derailed, but it’s clear that she needs to consider such a scenario.”

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