UK forecast to see biggest hit to growth from Iran war out of major economies

The UK is facing the biggest hit to growth from the Iran war out of the G20 major economies, according to an influential global policy group. Economic growth in the UK this year is forecast to be 0.7%, the Organisation of Economic Co-operation and Development (OECD) said, down from its previous forecast of 1.2%. Inflation is also predicted to be higher than expected. The OECD has downgraded forecasts for many of the world's biggest economies due to the US-Israel war with Iran. A prolonged conflict could trigger "significant energy shortages" globally, it warned, while if the sharp rise in fertiliser prices is sustained crop yields will be impacted and food prices will soar next year. Wholesale oil and gas prices have soared since the war started, due to disrupted supply from the effective closure of the Strait of Hormuz, one of the world's busiest oil shipping channels, and damage to oil and gas plants in the Middle East. Experts fear a prolonged period of high energy prices will dampen growth, fuel inflation, and make interest rate cuts less likely. The effects are already being felt at the pump, with UK drivers seeing higher petrol and diesel prices, and by heating oil users. Mor