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Business
EY Warns UK Economy Could Contract in 2027 if Hormuz Stays Closed
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🗓 03 Aug 2026, 11:38 AM
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EY has cautioned that the UK's GDP could shrink in 2027 if the Strait of Hormuz remains closed, citing potential disruptions to oil supplies.
EY, the global accounting firm, warned on Tuesday that the United Kingdom’s economy could contract in 2027 if the Strait of Hormuz remains shut.
The firm’s analysis links the risk to the strait’s critical role in global oil transit, noting that any prolonged closure could disrupt supply chains and push up energy prices.
EY’s report suggests that a contraction would stem from higher import costs, reduced industrial activity and a slowdown in consumer spending.
The warning follows heightened tensions in the region and the possibility of shipping disruptions, underscoring the vulnerability of the UK’s energy-dependent economy.
The firm’s analysis links the risk to the strait’s critical role in global oil transit, noting that any prolonged closure could disrupt supply chains and push up energy prices.
EY’s report suggests that a contraction would stem from higher import costs, reduced industrial activity and a slowdown in consumer spending.
The warning follows heightened tensions in the region and the possibility of shipping disruptions, underscoring the vulnerability of the UK’s energy-dependent economy.