The economic fortunes of the UK are intertwined with the price of natural gas. It is an uncomfortable fact that we have all had to wrestle with in recent years. First, Russia’s invasion of Ukraine caused the biggest inflation shock in a generation as the price of natural gas exploded in 2022, sparking a cost of living crisis that shows little sign of abating. Now, the US and Israel’s attack on Iran threatens to heap further economic misery on the country.
As Rachel Reeves arrives in Washington DC for the International Monetary Fund spring meeting, the bad news for the chancellor keeps coming: the IMF downgraded Britain’s growth prospects, with the UK suffering more than any other wealthy nation as a result of the conflict in Iran – driven in part by soaring energy costs once again.
