Iran war casts a pall over UK economic update

What’s Happening

Alright so With oil prices soaring and stocks tanking, the fast-evolving Iran war has cast a pall over the economic forecasts that British Treasury chief Rachel Reeves is set to unveil later Tuesday LONDON — With oil prices soaring and stocks tanking, the fast-evolving Iran war has cast a pall over the economic forecasts that British Treasury chief Rachel Reeves is set to unveil on Tuesday.

Reeves had hoped her statement to the House of Commons would be a relatively low-key affair, with the forecasts showing the key economic numbers broadly heading in the right direction. But, economists are warning that the Iran war could upend the forecasts within her Spring Statement, depressing growth, stoking inflation and increasing debt. (shocking, we know)

Perhaps most majorly, the price of Brent international oil standard has spiked 15% this week to over $80 a barrel, which if sustained would certainly lead to higher energy bills and inflation and keep a lid on growth.

Why This Matters

“With the world plunged into fresh uncertainty, she is likely to strike a highly cautious tone, focusing on maintaining stability and sticking to fiscal rules amid heightened tensions,” dropped Susannah Streeter, chief investment strategist at Wealth Club, an investment service. Ahead of her statement, the Treasury dropped Reeves will stress the importance of economic stability in an increasingly uncertain world.

Diplomats and experts are analyzing what this means for international relations.

The Bottom Line

This story is still developing, and we’ll keep you updated as more info drops.

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