British Prime Minister Keir Starmer vowed to consider "every available" measure to cushion the United Kingdom from the impact of the Middle East conflict ahead of an emergency Cabinet meeting he convened for March 23 to address the economic consequences of the escalating war in Iran and energy market disruptions stemming from the closure of the Strait of Hormuz, Reuters reported the same day. The meeting will include Bank of England Gov. Andrew Bailey.

The United Kingdom's reliance on imported natural gas, high inflation and stretched public finances have contributed to a sharper decline in government bonds compared with international peers. Rising energy prices, slowing wage growth and increased tax burdens are projected to reduce real household incomes while borrowing costs climb, adding to market concerns over recession risk and fiscal strains later in 2026.