Middle East War: How does it impact finances?
We were all no doubt shocked by the weekend’s events in the Middle East. The US and Israel launched a full-scale strike on Iran, targeting leadership figures, nuclear facilities, ballistic-missile sites and wider military infrastructure. Iran has retaliated with missile strikes against Israel and US bases in the Gulf.
Our heartfelt sympathies go to those affected, including civilians harmed by strikes and travellers stranded by airport closures in the Gulf region.
It’s only natural to feel uncertain about the impact this could have on markets, your investments, and whether or not you should be taking any action.
While the situation remains fluid and is unsettling, geopolitical shocks of this type are not new, and markets have historically absorbed similar events with volatility typically fading as the situation becomes clearer.
Spring Statement 2026 update
Chancellor Rachel Reeves delivered her Spring Statement earlier today.
Following the changes introduced in last year’s Autumn Budget, she didn’t announce any major new measures. Instead, the Statement focused on her response to the latest economic and public finance forecasts from the Office for Budget Responsibility (OBR). From now on, significant tax and spending decisions will be made only once a year, as part of the Autumn Budget.
Reeves reported that the OBR’s updated growth forecasts show average growth remains mostly steady. Gross Domestic Product (GDP) is expected to rise a bit slower in 2026, then accelerate in 2027 and 2028.
The OBR has downgraded its forecast for economic growth for this year to 1.1%. It has previously forecast the economy would grow by 1.3% in 2026.
It also shows inflation falling even faster than predicted in Autumn.
The chancellor confirmed she’s forecast to meet her main borrowing target, in 2029/2030, with over £23bn to spare.
It’s important to note that the OBR were finalising their forecast just as things escalated in the Middle East. They caveated their statement saying the conflict could have very significant impacts on the global and UK economies.
Not unexpectedly, Reeve’s statement was met with criticism from opposition parties.
Always here to help
I hope this helps to reassure you, and remember, I’m always here to help.
I’ll continue to send these emails as part of our ongoing service, designed to keep you up-to-date with current events that could impact your financial plans. And I’ll continue to monitor what’s going on and email you with any news or changes that I think may be of particular interest.
Best wishes
Paul Huggins
Financial Adviser
Huggins Wealth Management Ltd