America’s recent military intervention in Iran has triggered severe instability across the Middle East, disrupting vital oil and gas supplies and sending global energy prices soaring. With the UK highly dependent on imported energy, the surge in fuel and electricity costs threatens to push inflation back up, undermining recent progress made by the Bank of England. As a result, economists now expect the Bank to hold interest rates at 3.75% rather than cutting them, and some analysts believe a rate rise may be necessary to contain renewed inflationary pressures.

For small UK businesses, this uncertainty underlines the value of fixing financial costs now. Using asset refinance—where existing equipment or vehicles secure funding—can lock in fixed-rate facilities, providing protection against future rate volatility. Agreeing a deal today ensures predictable repayments, strengthens cash flow stability, and makes budgeting far easier as global conditions remain volatile.