OBR cautions about Middle East war dragging down growth and triggering a fresh cost of living crisis

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British households face a “pretty grim picture” for living standards as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, the government’s independent forecaster has said.

In a report as John Healey announced his first budget, the Office for Budget Responsibility (OBR) issued a sharp downgrade for growth in 2027, household disposable incomes and the public finances despite the measures taken by the chancellor.

Talks are aimed at reopening strait of Hormuz and lifting sanctions on Iran, and for Houthis to withdraw in Yemen

A multipronged peace deal to reopen the strait of Hormuz within four days of sanctions being lifted and for the Houthis to withdraw substantial forces inside Yemen are at the heart of Gulf states’ plans to avert what they regard as a disastrous renewal of war between Iran and the US.

The US is aware of the talks’ progress but is holding out for a concession that European powers suggest could involve Iran allowing UN weapons inspectors back into the country.

We want to hear from those working or living at sea, including maritime workers, sailors, port staff and family about how the situation is affecting their work

• Do you live near the Strait of Hormuz? How is the US-Iran conflict affecting your life?

The conflict in the Middle East continues to disrupt shipping across the region, including in the strait of Hormuz, one of the world’s busiest maritime routes.

Iran state TV has reported that seven oil tankers were damaged in the Straight of Hormuz on Wednesday night. There has been an increase in the number of attacks on ships in recent days; some vessels have been hit by drones, others by mines.