The United Kingdom economy stalled in January, with GDP showing no growth, according to data from the Office for National Statistics.

The slowdown came after weak growth at the end of 2025 and before the economic shock from the ongoing U.S.-Iran conflict.

Rising oil and gas prices linked to the war are increasing inflation risks for the U.K., an energy importer, and pushing mortgage rates and government borrowing costs higher.

Economists say the situation makes it unlikely that the Bank of England will cut interest rates in the near term, CNBC has reported.

Analysts warn the country now faces growing risks of stagflation as higher energy costs weigh on spending, investment, and hiring.