Prime Minister Sir Keir Starmer has announced he will lead a critical meeting of the Cobra emergency committee to thoroughly assess the economic repercussions of the escalating Middle East crisis, with a particular focus on mitigating the looming cost-of-living squeeze for British households.
Government to Explore Every Available Option
Sir Keir Starmer emphasised that the government would leave no stone unturned in its response, stating he would consider all options to address the financial pressures arising from the Iran war. The Prime Minister confirmed that the Cobra committee would meticulously examine every lever that's available to the Government to counteract soaring energy prices directly linked to the conflict.
Trump's Ultimatum and Market Turmoil
The emergency meeting coincides with a tense international situation, as former US President Donald Trump's 48-hour deadline for Iran to reopen the Strait of Hormuz—a vital oil and gas shipping route—approaches expiration at 11.45pm. Trump has threatened to obliterate Iranian power plants if the strait remains closed.
Financial markets have already reacted sharply to the crisis. In Europe and Asia, stock indices fell, while oil prices surged. The Brent crude benchmark rose by 1%, reaching nearly 114 US dollars a barrel, following Iran's warning that it would strike electrical plants across the Middle East if Trump carries out his bombing threat.
Cobra's Expanded Role in Economic Crisis
Sir Keir highlighted the unusual but necessary expansion of Cobra's remit. Cobra is the opportunity at the highest level to bring people together on matters of real, significant national importance, he told reporters. Traditionally used for military and consular considerations, the committee is now pivoting to address widespread public anxiety about the economic fallout.
Most people are very concerned now, not only what they're seeing on their screens in relation to the conflict itself, but also that question of: 'How is it going to affect me and my family?' Starmer noted, underscoring the domestic impact of international events.
Comprehensive Economic Response
The Prime Minister detailed that today's Cobra session would specifically analyse the economic impact, with a directive to discuss every available governmental lever to tackle the cost of living. To ensure a robust response, the meeting includes key institutions such as the Bank of England.
I want to make sure that when it comes to the cost of living, we're doing everything we possibly can at a very difficult period like this, Starmer affirmed, reinforcing his commitment to proactive measures during this challenging time.
