Episode Details

Economist David Lubin warns that Britain’s fragile economy could face a brutal stagflation crisis if the Strait of Hormuz stays closed, triggering soaring prices and grinding economic stagnation. With inflation already stubborn and growth sluggish, raising taxes could backfire, forcing Labour to slash spending despite their promises. Households are already bracing for a 13% energy bill hike—adding $200 annually—and Lubin hints at grim measures like fuel rationing or energy conservation mandates if things worsen. Even a peace deal won’t fix it fast: oil wells are offline, shipping remains risky, and global reserves are depleted, keeping prices high for months. Britain’s structural weaknesses and investor uncertainty paint a dire picture, forcing policymakers into tough, unpopular choices.

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