LONDON, March 13, 2026 (BSS/AFP) - Britain's economy stalled in January, official data showed Friday, with the possibility of worse gloom in the coming months as the Middle East conflict sends oil prices surging. Gross domestic product showed zero growth at the start of the year after GDP expansion of 0.1 percent in December, the Office for National Statistics said in a statement. The UK, which has struggled to grow economic output since Prime Minister Keir Starmer's Labour party won power in July 2024, is likely to suffer along with other major economies because of the war pushing up inflation. Responding to Friday's data, finance minister Rachel Reeves acknowledged "there is more to do" to grow the UK economy "in an uncertain world". On Monday, she warned that Britain risked rising inflation as a consequence of the war involving Iran, the United States and Israel. January's growth data "is almost entirely overshadowed by events in the Middle East, with oil prices continuing to climb despite the release of emergency reserves and fears growing over unprecedented supply disruption", noted analyst Samuel Edwards at financial services firm Ebury. "With the UK heavily exposed to this inflationary shock, businesses across the country will be bracing for a surge in energy and fuel costs and interest rates staying higher for longer." The Bank of England, which before the start of the war, was widely expected to cut its benchmark interest rate next week, is now forecast to freeze borrowing costs or even hike because of inflation risks. And "GDP growth is more likely to lose momentum in the coming months rather than gain it", said Paul Dales, chief UK economist at Capital Economics research group. "An energy price shock also reduces GDP growth," he added.