Britain’s economy contracted by 0.1% in April as the Iran war, the wider Middle East crisis and domestic political instability increased pressure on business activity, according to the Office for National Statistics. The figures, published on Thursday, marked the first monthly decline since August last year. Some companies cited the conflict as a factor raising costs and affecting turnover.

The ONS said economic performance was normal over the three months from February to April, with growth up 0.7% from the previous three-month period. March had recorded stronger-than-expected growth. However, growth in administrative and support services, arts, entertainment and recreation fell by 0.2% in April. An ONS official said British firms linked to cancelled Middle East sporting events were also affected, including Formula One Grands Prix planned in Bahrain and Saudi Arabia, as well as tennis and football events.

BBC reporting said the effective closure of the Strait of Hormuz pushed Brent crude as high as $120 a barrel before prices began to fall on hopes the war could end. Higher fuel prices have raised petrol, diesel and household bills in Britain. KPMG UK economist Yael Selfin warned of continued pressure on consumers and businesses, while RSM economist Thomas Pugh said conditions were likely to worsen.