World

Iran War Fuel Shock Hits UK and Australia Economies

The ongoing Iran war has triggered a fuel-driven inflation surge that is now visibly reshaping Western economies. Australia's inflation jumped to 4.6% in the year to March — up sharply from 3.7% the month prior — with financial markets pricing in a third consecutive interest rate hike from the Reserve Bank next Tuesday. The UK faces an even grimmer outlook, with the thinktank Niesr warning of a £35bn economic hit and a genuine recession risk in 2026.

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