Tesco, Britain’s biggest food retailer, said uncertainty about the economic impact of the conflict in the Middle East on consumers had clouded its outlook, and in the worse case could result in profit falling this year, Reuters reports.

For its 2026/27 year, Tesco forecast adjusted operating profit of between 3.0 billion and 3.3bn pounds ($4.07-$4.48 bn), versus 3.152bn pounds made in 2025/26, which was up 0.6 per cent on the year before.

“Much will depend upon the duration of the conflict and in particular, the potential implications for UK households and the economy more broadly,” Tesco said.