Britain's economy may shrink in 2027 if the Strait of Hormuz closure continues. Forecasters predict a 0.2% contraction if the waterway remains shut until mid-2027. This scenario would also increase inflation to 6.4% by the end of 2026. However, reopening the strait by September improves this year's forecast to 0.8%. EY expects interest rates to be cut next year after holding them steady. [...]