A new report has warned that Donald Trump's war in Iran could lead to more than 160,000 job losses in the UK. The analysis by the Item Club found that South Wales and the Humber are set to be the worst affected regions.
Sharp rises in energy prices resulting from the Middle East conflict are expected to hit the manufacturing and construction sectors hardest. Tim Lyne, economic adviser to the Item Club, said: “Some of the lowest income regions will feel the biggest effects of the manufacturing and construction sectors reducing headcount in the face of rising energy prices and supply chain disruption.” He added that this would create a knock-on effect in the retail and hospitality sectors as household budgets tighten.
On Tuesday, Defence Secretary John Healey will co-chair a meeting of defence chiefs from around the world to discuss plans to protect the Strait of Hormuz. British warship HMS Dragon is deploying to the Middle East as leaders work to keep the vital trade route open once fighting ceases. Healey said: “The UK is leading this multinational, defensive mission because trade, energy, and economic security for working people here at home depend on it.”
Mr Trump has repeatedly promised a quick end to the war, but there has been no sign of a resolution since the US and Israel launched strikes in February. Pakistani Prime Minister Shehbaz Sharif said Iran has responded to peace accords, though he did not specify the content. Reports suggest a 14-point memorandum of understanding could lead to negotiations on Iran's nuclear ambitions, including restoring free transit through the Strait of Hormuz, which carries 20% of the world's oil and natural gas.
Iranian President Masoud Pezeshkian stated: “We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat.”
