The Iran war risks bringing the G7's fastest-growing economy to a halt

The article says the U.K. economy has recently outperformed expectations, with Q2 GDP growth of 0.4% after 0.6% in Q1 and business investment rising 1.7%, keeping Britain on track to be the fastest-growing G7 economy for a second straight quarter. But the backdrop is deteriorating: the Iran war and any prolonged Strait of Hormuz disruption could lift energy prices, squeeze household spending, and slow growth sharply in the second half. Economists warn the current rebound may prove temporary, and Treasury modeling reportedly suggests growth next year could fall to just 0.3% if the conflict persists. Overall, the article frames a mixed macro picture for U.K. assets, with near-term growth resilience offset by rising inflation and downside risks from higher oil and gas costs.