Keir Starmer will chair a Cobra meeting on Monday afternoon with senior ministers and the Bank of England governor to discuss contingency measures amid rising energy prices and borrowing costs linked to the US-Israel war against Iran. The prime minister said he wanted to reassure Britons that every lever available to the government would be explored to ease the impact on the cost of living.
Downing Street downplayed suggestions that the chancellor, Rachel Reeves, would announce immediate financial support for households after the meeting. Instead, discussions are expected to focus on assessing the economic impact, preventing shortages—including fuel—and pressing regulators and businesses to stamp out profiteering.
Economists and energy experts have warned the conflict could trigger an economic shock similar to the 1970s oil price spike or Russia’s invasion of Ukraine. Iran has effectively blocked the Strait of Hormuz, a key route for oil and gas to Europe, in response to the attacks.
The US president, Donald Trump, extended his deadline to strike Iran’s power stations and energy infrastructure by five days, claiming “very good and productive conversations” on ending the conflict. Downing Street welcomed the prospect of a breakthrough, with Starmer’s spokesperson stressing that the Strait of Hormuz must be reopened.
Starmer has distanced the UK from the conflict, which opinion polls show is deeply unpopular domestically. He refused US permission to use UK air bases for the initial attack, allowing only strikes on Iranian missile bases—a move that angered Trump. The two leaders spoke in a 20-minute call on Sunday night that Downing Street described as constructive.
