COBRA meeting called on Iran War impact on economy – expert reaction

Daniela Hathorn, Senior Market Analyst, Capital.com said:

This highlights just how quickly the Middle East conflict has moved from a geopolitical issue to a domestic economic risk for the UK. The decision to convene a COBRA meeting with the Prime Minister, Chancellor and Bank of England Governor underscores the seriousness of the situation. This is not just about monitoring markets, it’s about managing potential spillovers into energy security, inflation and financial stability. The UK is particularly exposed on all three fronts. Its reliance on imported natural gas makes it vulnerable to global energy shocks, while inflation is already elevated and public finances remain stretched. That combination explains why UK gilts have underperformed peers as markets are demanding a higher risk premium for holding UK debt in an increasingly uncertain environment.”

Raj Abrol, CEO, Galytix said: “A COBRA meeting is a sign that risk and uncertainty are at the top of the economic agenda, meaning financial stagnation could become the new normal. In an increasingly complex world, mastering AI to navigate investments and assess market volatility will be an essential step forward, allowing organisations to manage and deploy capital as well as planning future investments and building accurate risk profiles.”

Kenny MacAulay, CEO of accounting platform Acting Office said: “The Prime Minister’s decision to hold an emergency meeting on the economic impact of the Iran war underlines the immense uncertainty and challenges facing UK PLC this year. For businesses bracing for the worst, the urgency of implementing AI and overhauling existing systems is now a necessity. As interest rates remain on hold and inflation simmers, companies will be wise to make those technology changes sooner rather than later.”