U.K. Consumer Sentiment Dragged Further by Iran War

U.K. consumer sentiment fell sharply in April, dropping four points to -25 in GfK’s survey — the biggest monthly fall in a year and the weakest reading since October 2023. The decline is attributed to growing concerns about the economy as tensions in the Middle East, particularly the Iran war, heighten inflation and energy‑price worries. Markets could interpret the deterioration in household confidence as a drag on domestic spending and growth, likely to weigh on sterling (GBP) and risk appetite while supporting safe‑haven assets and adding upward pressure to energy prices. The data may also temper expectations for near‑term Bank of England policy tightening if the weakness persists.