Sir Keir Starmer will chair a meeting of the Middle East Response Committee this week to address the ongoing economic impact of the Iran war, warning that the consequences could persist “for some time”. The prime minister will convene the committee, which includes representatives from the Bank of England, amid rising oil prices and the continued blockade of the Strait of Hormuz.
Speaking at the Usdaw union’s conference in Lancashire on Monday, Starmer said he had called the meeting for Tuesday “so you can be sure we will stand by working people in this crisis”. He added: “I have to level with you about Iran. The truth is the economic consequences could still be with us for some time. You don’t need to be a politician to know that, you can see it on every petrol forecourt across the country.”
The meeting comes as oil prices hit a near three-week high on Monday, with benchmark Brent crude rising 2 per cent to just under $108 a barrel. The Strait of Hormuz, through which a fifth of the world’s oil supplies pass, remains effectively blocked after peace talks between the US and Iran stalled. US President Donald Trump declared over the weekend that envoys would no longer travel to Pakistan for negotiations due to a lack of progress.
Labour has faced pressure to outline measures to protect Britons from rising prices and uncertainty. Starmer reiterated that the government has capped household energy costs until July and frozen fuel duty until September. However, Chief Secretary to the Prime Minister Darren Jones warned on Sunday that price hikes resulting from the conflict will be felt for at least eight months after the war ends, affecting energy, food, and flight prices “as a consequence of what Donald Trump has done in the Middle East”.
