UK Economy Faces Recession Risk if Strait of Hormuz Remains Closed, EY Warns
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At a glance
- EY warns UK faces recession in 2027 if Strait of Hormuz stays closed.
- Closure could push UK inflation to 6.4% by the end of 2026.
- A commercial vessel has reported a nearby explosion in the region.
Story so far
Economic forecaster EY has warned that a prolonged closure of the Strait of Hormuz could push the UK economy into recession in 2027 and cause inflation to surge. The warning, issued on August 3, follows reports of a security incident near Khasab, Oman, where a commercial vessel reported a nearby explosion. The potential economic impact hinges on when the vital shipping lane reopens.
Latest development
Forecasters at EY have warned that the UK economy could enter a recession in 2027 if the Strait of Hormuz remains closed to shipping into next year. The warning comes as a commercial vessel reported a nearby explosion in the region.
Sources and updates
Dawn News - Youtube
Closure of Strait of Hormuz Could Put UK Economy at Risk | Breaking News | Dawn News
Business Recorder
UK faces recession if Strait of Hormuz stays closed, forecaster warns
Samaa TV - Youtube
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