Sir Keir Starmer is to chair an emergency Cobra meeting on Monday to address the economic impact of the Iran war, amid warnings that price rises are “inescapable”. Senior cabinet ministers, including Chancellor Rachel Reeves, Foreign Secretary Yvette Cooper and Energy Secretary Ed Miliband, along with Bank of England Governor Andrew Bailey, are expected to discuss energy security, supply chain resilience and support for families and businesses.
The meeting comes as tensions escalate in the Middle East, with Donald Trump threatening to “obliterate” Iran’s power plants if it does not reopen the Strait of Hormuz, a critical oil shipping lane. Iran has retaliated by vowing to target energy infrastructure across the region and shut the strait completely if the US follows through. On Sunday night, Starmer spoke to Trump about the need for access along the channel.
Housing Secretary Steve Reed refused to rule out potential food and petrol shortages, stating the government is monitoring the situation “hour by hour” but that there is no need for fuel rationing yet. Meanwhile, Chris O'Shea, chief executive of Centrica (owner of British Gas), warned that a rise in energy bills may be unavoidable if the conflict persists, though he expects a greater impact on petrol prices than on household energy bills.
Lord Walker of Broxton, the government’s cost of living tsar and executive chairman of Iceland, has urged Starmer to impose a temporary profit cap on energy companies and petrol retailers to prevent profiteering during the crisis. He noted that the Competition and Markets Authority has “newly enhanced powers to step in if required”. The average annual household energy bill is predicted to rise by £332 in July, according to Cornwall Insights.
