Britain Faces Recession If Strait of Hormuz Remains Closed Until 2027

ILLUSTRATION UNSPLASH/Igor Sporynin

LONDON - Britain is at risk of economic recession in 2027 if the Strait of Hormuz is not opened, according to a report by The Independent newspaper citing data from consulting firm EY.

The report said that if the Strait of Hormuz is not opened by the beginning or at least the middle of 2027, then the UK's gross domestic product (GDP) will only grow by 0.5 percent in 2026 and fall by 0.2 percent in 2027.

Quoted by ANTARA from Sputnik, Monday, August 3, EY concluded that with such a bad scenario, inflation could rise to 6.4 percent by the end of 2026 due to a drastic increase in oil and energy costs.

On July 8, US President Donald Trump said the arms reduction, which was signed with Iran on June 18, was no longer in effect. US forces also launched an attack on Iran at that time.

US Central Command (CENTCOM) argued that the attack was carried out in response to Iran's actions against merchant ships crossing the Strait of Hormuz.

Iranian forces also responded to the US attack by launching retaliatory attacks on US military bases in the Middle East, blocking the Strait of Hormuz, and accusing the US of violating the ceasefire agreement.