Prime Minister Sir Keir Starmer has called for a return to calm and a ceasefire as escalating clashes between Iran and Israel push oil prices higher, impacting the United Kingdom. The Prime Minister expressed his deep concern over the renewed violence, which marks the first major exchange of fire between the two nations since the April ceasefire.
Rising Oil Prices and Economic Impact
In early trading on Monday, the price of Brent crude oil surged by approximately 5%, reaching over 97 US dollars a barrel. This increase reflects growing instability in the Middle East, a region crucial to global energy supplies. Starmer acknowledged that the conflict is already having a significant impact on the UK, urging all parties to return to the ceasefire.
Political Reactions
Foreign Secretary Yvette Cooper also weighed in, stating that the resumption of conflict benefits no one and calling for both sides to show restraint and de-escalate immediately. US President Donald Trump, whose earlier call for restraint from Israeli Prime Minister Benjamin Netanyahu appeared to be ignored, urged both parties to stop shooting immediately.
The Israel Defence Forces (IDF) confirmed they had struck military targets in Iran, following Iranian missile launches against Israel. The IDF stated that the attacks targeted western and central Iran, with Iranian state television reporting explosions in Isfahan, Tabriz, and Tehran. Meanwhile, Iran-backed Houthi rebels in Yemen claimed responsibility for an attack on Israel and warned that Israel-affiliated vessels would again be targeted in the Red Sea.
Ceasefire Negotiations Underway
Despite the spike, oil prices remained below the 100 dollars a barrel mark and well short of the 120 dollar peak reached in April. Starmer emphasized that serious negotiations are ongoing towards a lasting peace, and it is crucial to give them every chance of success. He reiterated his call for all parties to fulfil their responsibility to return to the ceasefire.
