Prime Minister Keir Starmer has pledged to use “every lever that’s available to the government” to help Britons cope with rising costs of living stemming from the US-Israel war against Iran. Speaking during a school visit in London, Starmer said he wanted to reassure the public that everything was being done to mitigate the economic fallout from the conflict, which has driven energy prices and government borrowing costs higher.
Starmer will chair a Cobra meeting on Monday afternoon with key ministers and Bank of England Governor Andrew Bailey. Attendees include Chancellor Rachel Reeves, Energy Secretary Ed Miliband, and Foreign Secretary Yvette Cooper. The meeting will discuss possible contingency measures, focusing on the economic impact of the war and potential shortages, including fuel.
Downing Street downplayed expectations of immediate financial support for households, saying the discussions would centre on assessing the economic shock, stamping out profiteering, and pressing regulators and businesses to ensure supply chains remain stable. Starmer noted that for many people, watching the conflict on television raises concerns about how it will affect their families.
Economists have warned that the crisis could trigger an economic shock similar to the 1970s oil price spikes or the aftermath of Russia’s invasion of Ukraine. Iran has blocked the Strait of Hormuz, a key route for oil and gas shipments to Europe, and launched missiles at military and infrastructure targets in the region.
US President Donald Trump extended his deadline to strike Iran’s energy infrastructure by five days, claiming “very good and productive conversations” were underway. Starmer spoke with Trump on Sunday night in a 20-minute call described as constructive. The UK has welcomed any prospect of de-escalation, with Starmer emphasising the need to reopen the Strait of Hormuz while avoiding being dragged into the war.
