Sir Keir Starmer has urged Britons not to panic over the economic repercussions of the Iran war, though he acknowledged that people may need to adjust their shopping habits and holiday plans. The Prime Minister, who will chair the ministerial Iran crisis committee on Tuesday, stated that the government currently has confidence in supply chains.
Government Efforts to Mitigate Crisis
Speaking to the Cathy Newman Show on Sky News, Starmer emphasised that the UK is doing everything possible to reopen the Strait of Hormuz, a critical route for oil and gas shipments that has been effectively closed by Iran since the US-Israeli bombing campaign began. He noted that France and the UK would lead a military mission to reassure ships passing through the strait, though this initiative is not expected to start until hostilities cease.
“There is going to be an impact on the UK. There already is,” Starmer said. “I think it’s really important that I level with the public that we are doing everything we can to get the Strait of Hormuz open, because obviously that is vital in terms of minimising the impact. But I don’t want anybody to think that, once the Strait is open, that that’s the end of the damage. It will go on longer than that.”
Daily Meetings and Contingency Plans
The Prime Minister revealed that there are almost daily meetings of ministers and officials focused on managing the crisis’s impact. He highlighted the reopening of a CO2 plant in the North East and assurances from airlines that they currently have sufficient jet fuel. However, he cautioned that the duration of the conflict remains uncertain.
“I can see that, if there’s more impact, people might change their habits… where they go on holiday this year, what they’re buying in the supermarket, that sort of thing,” Starmer added.
Public Reassurance and Government Measures
When asked for his message to the public, Starmer said: “Don’t panic. But, we chose not to get involved in this war. That was the right thing to do but we must protect the British people from the impact of it.”
Tuesday’s meeting of the Middle East Response Committee (Merc) will include senior ministers and representatives from the Bank of England. Earlier, in a speech in Lancashire, the Prime Minister described the response to the economic and political shock from the war as defining for both his government and this generation. He remarked that the world is now more volatile and dangerous than at any point in his lifetime.
Oil Prices and Peace Talks
Oil prices hit a near three-week high on Monday as hopes for progress in US-Iran peace talks were dashed again. Negotiations had been expected in Pakistan, but US President Donald Trump declared over the weekend that envoys from Washington would no longer travel to Islamabad due to lack of progress. Trump told Fox News: “If they want, we can talk but we’re not sending people.”
While Trump indefinitely extended the ceasefire between the US and Iran, which largely halted fighting that began with joint US-Israeli strikes on February 28, a permanent resolution remains elusive. The Strait of Hormuz, through which a fifth of the world’s shipped oil supplies pass, remains effectively blocked.
Oil prices fell in mid-April when progress on reopening the strait seemed imminent, but Trump’s weekend announcement sent prices soaring again. Benchmark Brent crude rose 2% to around $108 a barrel on Monday, returning to levels seen before the initial peace talks.
Government Actions on Energy Costs
Starmer reiterated that the government has capped household energy costs until July, regardless of developments in Iran, while fuel duty is scheduled to remain frozen until September.
