Iran War Threatens UK Economy: Reeves' Update Overshadowed by Soaring Oil, Inflation Fears

• UK Treasury chief Rachel Reeves' economic update is overshadowed by the fast-evolving Iran war.
• Economists warn the conflict could depress growth, stoke inflation, and increase national debt.
• Brent international oil standard spiked over 15% to USD 80 a barrel, threatening higher energy bills and inflation.
• Reeves is expected to strike a cautious tone, emphasizing stability and fiscal rules amid global uncertainty.
• Despite recent positive indicators and falling inflation, the Labour government's hopes for economic recovery in 2026 face new challenges.