Sir Keir Starmer has warned that the ongoing conflict with Iran could force British citizens to reconsider their holiday destinations and shopping routines, though he urged the public not to panic over the economic repercussions.
Prime Minister Addresses Economic Fallout
The Prime Minister, who is set to chair a meeting of the ministerial Iran crisis committee on Tuesday, acknowledged that the government currently remains confident about supply chains. However, he stressed that the UK is doing everything possible to reopen the Strait of Hormuz, a critical passage for oil and gas shipments that has been effectively closed by Iran since the commencement of the US-Israeli bombing campaign.
Sir Keir revealed that France and the UK will jointly lead a military mission to reassure vessels traversing the strait, although this initiative—driven by the Prime Minister and French President Emmanuel Macron—is not anticipated to begin until hostilities cease.
Impact on Daily Life
Speaking on the Cathy Newman Show on Sky News, Sir Keir stated: "There is going to be an impact on the UK. There already is. And 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." He added that even after the strait reopens, the damage will persist longer than many expect.
The Prime Minister noted that ministers and officials are holding 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, but cautioned that the duration of the conflict remains uncertain.
He elaborated: "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." His 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."
Government Response and Economic Measures
Tuesday’s meeting of the Middle East Response Committee (Merc)—the panel established to address the crisis—will include senior ministers and representatives from the Bank of England. Earlier, during a speech in Lancashire, the Prime Minister asserted that 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." He remarked: "The world has changed. It is more volatile and dangerous now than at any other point in my lifetime."
Oil prices surged to a near three-week high on Monday as hopes for US-Iran peace talks faded. Negotiations had been anticipated in Pakistan, but President Trump declared over the weekend that Washington would no longer send envoys to Islamabad due to a lack of progress. Trump told Fox News: "If they want, we can talk but we’re not sending people."
Last week, Trump indefinitely extended the ceasefire between the US and Iran, which was agreed on 7 April and has largely halted the fighting that began with joint US-Israeli strikes on 28 February. However, a permanent resolution remains elusive, and the Strait of Hormuz—through which a fifth of the world’s shipped oil supplies transit—remains effectively blocked.
Oil prices had dipped in mid-April amid signs of progress toward reopening the strait, but Trump’s weekend announcement sent them climbing again. Benchmark Brent crude rose 2% to around $108 per barrel on Monday, returning to levels seen before the initial peace talks in early April.
Sir Keir 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.
