Prime Minister Sir Keir Starmer has suggested that the ongoing war in Iran could put summer holidays at risk and increase the cost of weekly shopping. Speaking on the Cathy Newman Show on Sky News, Starmer acknowledged the economic impact of the crisis and urged the public not to panic, but admitted that people might need to adjust their shopping habits and holiday plans.
Government Response to the Crisis
Starmer, who will chair a meeting of the ministerial Iran crisis committee on Tuesday, said the government is currently confident about supply chains but is working to mitigate the effects. He highlighted efforts to reopen the Strait of Hormuz, a vital oil and gas shipping route effectively closed by Iran since the US-Israeli bombing campaign began. The UK and France plan to lead a military mission to reassure ships passing through the strait, though it 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.”
Economic Measures and Public Advice
The Prime Minister noted that ministers and officials hold almost daily meetings to manage the crisis. “At the moment, we’re confident about supply. We have reopened a CO2 plant in the North East. Airlines are telling us that they’ve got enough jet fuel at the moment,” he said, adding that the duration of the conflict will determine further impacts. “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’s message to the public was clear: “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.”
Middle East Response Committee Meeting
Tuesday’s meeting of the Middle East Response Committee (Merc), the panel set up to deal with the fallout from the crisis, will be attended by senior ministers and representatives from the Bank of England. Earlier, in a speech in Lancashire, Starmer said the response to the economic and political shock from the war, which has strained transatlantic relations with President Donald Trump’s US, “will define not just this Government but arguably this generation.”
“The world has changed. It is more volatile and dangerous now than at any other point in my lifetime,” he said.
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. Negotiations had been expected in Pakistan, but President Trump declared over the weekend that envoys from Washington would no longer travel to Islamabad due to a lack of progress. Trump told Fox News: “If they want, we can talk but we’re not sending people.”
The ceasefire between the US and Iran, agreed on April 7, has largely halted fighting that began with joint US and Israeli strikes on February 28. However, a permanent resolution has not been reached, and 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 seemed likely, 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 peace talks began.
Government Measures to Protect Consumers
Starmer reiterated that the government has capped household energy costs until July, regardless of events in Iran, while fuel duty is frozen until September.
