Britain’s largest supermarket chain, Tesco, has said that uncertainty surrounding the economic impact of the ongoing Middle East conflict is clouding its financial outlook and could potentially lead to lower profits this year.
The company noted that the situation remains highly dependent on how long the conflict continues and its broader effects on UK households and the economy.
For the 2026/27 financial year, Tesco projected adjusted operating profit in the range of £3.0 billion to £3.3 billion ($4.07–$4.48 billion), compared with £3.152 billion recorded in 2025/26, which represented a 0.6 percent increase from the previous year.
Tesco said its outlook reflects possible downside risks, adding that much will depend on the duration of the conflict and its impact on consumer spending, inflation, and overall economic conditions in the UK.