Prime Minister Keir Starmer will chair an emergency Cobra meeting on Monday to discuss the economic fallout from the US-Israel war against Iran, amid rising energy prices and increased government borrowing costs. The meeting, attended by Bank of England Governor Andrew Bailey, Chancellor Rachel Reeves, Energy Secretary Ed Miliband, and Foreign Secretary Yvette Cooper, will explore contingency measures.
Speaking during a school visit in London, Starmer pledged to use “every lever that’s available to the government” to mitigate the cost-of-living impact. “Cobra is the opportunity at the highest level to bring people together on matters of real, significant national importance,” he said, noting that while Cobra meetings typically focus on military or consular issues, the economic dimension is now critical.
Downing Street downplayed expectations of immediate financial support for households, indicating the session would instead focus on assessing economic effects, preventing shortages—including fuel—and urging regulators and businesses to curb profiteering. Experts have warned the conflict could trigger shocks comparable to the 1970s oil crises or Russia’s invasion of Ukraine.
Iran has blocked most shipping through the Strait of Hormuz, a key route for oil and gas to Europe, in retaliation for US-Israeli strikes. On Monday, US President Donald Trump extended a deadline for strikes on Iran’s energy infrastructure by five days, citing “very good and productive conversations” on ending the conflict. No 10 welcomed any breakthrough, with Starmer’s spokesperson stressing the need to reopen the strait.
Starmer spoke with Trump on Sunday night in a 20-minute call described as constructive. The UK has distanced itself from the conflict, refusing permission for US forces to use UK bases for the initial attack, though later allowing strikes on Iranian missile sites. This has prompted criticism from Trump, who posted a satirical video mocking Starmer’s perceived indecisiveness.
