The International Monetary Fund (IMP) has warned that the UK will be the most affected by the Iran war, with the country's economy predicted to grow by just 0.8% in 2026, down from 1.3% in 2025. This is the largest cut to growth of any G7 economy. The IMF also warned that a protracted conflict could worsen the situation, while increasing public debt and weakening financial stability could negatively impact the economy.