UK households are expected to lose an average of £2,400 in real disposable income by the end of 2027, according to the Centre for Economics and Business Research. The Iran conflict, triggered by US-Israeli strikes in late February 2026, shut the Strait of Hormuz and drove diesel prices up 35% and petrol 19%. Across all UK households, this translates to £70.4 billion in lost income, with roughly £1,100 lost in 2026 and £1,300 more expected in 2027. The National Institute of Economic and Social Research cut its 2026 UK growth forecast to 0.9%, and an additional 1.3 million households may face higher mortgage payments by end of 2028.
Source: Read the original article
