Back to today’s briefing

Story perspectives

UK Economy Stagnates Amid Rising Oil Prices and Conflict

3/14/2026

39 5 Full Breakdown

Summary

Story summary

The UK economy stagnated in January with zero GDP growth as oil rose above $100 per barrel due to the Middle East conflict.
Rachel Reeves, Chancellor of the Exchequer, says restoring shipping through the Strait of Hormuz is essential.
Business leaders warn that higher energy costs and disrupted supply chains threaten growth and could lift inflation and rates.
The effects may ripple globally, affecting trading partners such as Kenya.

History

Historical Context

The 1973 oil crisis, triggered by the Arab oil embargo during the Yom Kippur War, saw oil prices quadruple from $3 to nearly $12 per barrel, causing economic stagnation in Western nations. This crisis led to inflation and recession, marking the onset of stagflation. Today, rising oil prices above $100 per barrel due to Middle East tensions echo these past challenges, threatening global economic stability.

1 of 2

Story summary

The UK economy stagnated in January with zero GDP growth as oil rose above $100 per barrel due to the Middle East conflict.
Rachel Reeves, Chancellor of the Exchequer, says restoring shipping through the Strait of Hormuz is essential.
Business leaders warn that higher energy costs and disrupted supply chains threaten growth and could lift inflation and rates.
The effects may ripple globally, affecting trading partners such as Kenya.

1 / 2