Iran war will spare no major economy, says OECD — but the UK is more vulnerable than others

The OECD's interim economic outlook (Thursday) warns the U.K. is likely to be worse hit by a war involving Iran than other developed-market peers, increasing downside risk to U.K. growth. No quantitative estimates were provided; implications include potential pressure on sterling, UK-sensitive assets and energy-exposed sectors, warranting more risk-off positioning and monitoring of oil prices and policy responses.

Analysis

The OECD's interim economic outlook (Thursday) warns the U.K. is likely to be worse hit by a war involving Iran than other developed-market peers, increasing downside risk to U.K. growth. No quantitative estimates were provided; implications include potential pressure on sterling, UK-sensitive assets and energy-exposed sectors, warranting more risk-off positioning and monitoring of oil prices and policy responses.