Keir Starmer has raised concerns about the potential economic impact on the UK due to the ongoing US-Israeli conflict with Iran. However, the Prime Minister reassured the public on Monday that the country’s economy is resilient enough to withstand the anticipated effects on households and businesses. He acknowledged the growing anxiety among the population as Tehran retaliated with missiles and drones across the Middle East.
The escalation of the conflict in Iran has led to a surge in oil prices, surpassing $100 a barrel for the first time in almost four years. Speaking on Monday, Starmer emphasized the government’s proactive approach to collaborating with various stakeholders, including the Bank of England, to assess risks, monitor the situation, and engage with international partners to mitigate the potential impact on the UK economy.
Highlighting the importance of preparedness, Starmer emphasized the necessity of forecasting and addressing the risks posed by the prolonged conflict, both to individuals and businesses. He stressed the government’s commitment to staying ahead of the situation, working collaboratively, and taking proactive measures to minimize adverse effects.
In a separate development, Chancellor Rachel Reeves is expected to participate in an urgent meeting with G7 finance ministers to address the implications of soaring oil prices. Meanwhile, US President Donald Trump downplayed the price hikes, stating that they are a minor cost for global peace.
Addressing concerns over fuel shortages amid the Middle East turmoil, Cabinet minister Steve Reed urged motorists not to panic, reassuring that there is an adequate supply of fuel and gas in the country. He emphasized the government’s vigilance in monitoring the situation closely to respond promptly if necessary.