UK Economy at Crossroads: Hormuz Peace Hopes Clash with Recession Warnings

The UK economy starts the week with a stark divergence: the FTSE 100 opens higher on hopes of an imminent Iran war peace deal, while a new EY forecast warns the country could tip into recession next year if the Strait of Hormuz remains blocked. Markets are betting on diplomacy; economists are preparing for stagflation.

Headwinds

• Strait of Hormuz closure risk: If the waterway stays shut, 20% of global oil and gas supplies remain trapped, sending energy prices...