UK economy shrank by 0.1% in April as Iran war held back growth

The UK economy contracted by 0.1% in April, a reversal from the 3% expansion seen in March, according to official figures. This downturn is attributed to rising energy prices, a consequence of the conflict involving Iran and the closure of the Strait of Hormuz, a critical global shipping route. The conflict's impact on energy markets began to affect the UK's economic growth trajectory after a strong performance in the first quarter. The initial 3% rise in GDP during March had signaled robust economic activity, but the subsequent contraction in April indicates a shift driven by external geopolitical and economic pressures. The closure of the Strait of Hormuz, a vital artery for international trade, directly contributed to increased energy costs, which in turn dampened economic output.