Money Distilled

The Iran War Has Smashed Britain’s 2026 Hopes

A lack of resilience and wiggle room has seen tailwinds for Britain turn into headwinds.
Andrew Bailey, governor of the Bank of England.Photographer: Stefani Reynolds/Bloomberg
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Welcome to the award-winning Money Distilled newsletter. I’m John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money.

At the start of the year, things looked so promising for the UK.