The pound faces continued impact from Middle East conflicts, with the UK's fragile economic background amplifying geopolitical risks.

Golden Ten Data reported on March 4 that Antonio Ruggiero from Convera pointed out in a report that if the Middle East conflict continues, the pound will face significant risks. He stated that although it is too early to assess whether the conflict will have a substantial negative economic impact, given the UK's fragile political and economic background, its performance is particularly worth watching. He believes that the rise in oil prices caused by the war may drag down economic growth while pushing up inflation. "This will lead to reduced tax revenue and increased government borrowing costs due to higher risk premiums." He noted that the improvement in fiscal space announced in Tuesday's Spring Budget will become meaningless in this context.