The UK is weathering the Iran war better than expected. The global economy has been rocked by the US-Israel war with Iran. The transportation and production of energy in the Middle East has been severely disrupted, causing oil prices to jump and inflation to rise. To calm the rate of price rises, central banks, including the Bank of England, are expected to hike interest rates in the coming months. Despite all this, the IMF said the global economy is doing much better than expected, partly because of the surge of investment into artificial intelligence (AI). And this is good news for the UK. Could UK energy costs raise bills despite growth upgrade? No, the IMF raised its 2026 growth number but said higher energy prices and interest rates are expected to slow Britain in 2027. It announced no bill cut.