Starmer fears ‘untold damage’ to UK economy from Iran war
Sir Keir Starmer has warned that the impacts of the Iran war will be “significant” as he insisted the government’s central position was to stay out of the conflict.
Starmer told MPs on Monday that the main war in Iran, which lasted over a month before a ceasefire was announced last week, had already harmed the UK economy as “visible on every petrol forecourt in the country”.
He said that he was pushing for a toll-free opening of the Strait of Hormuz, the critical trading route for around a fifth of global oil and gas supplies plus other key materials, and that he would not join President Trump’s naval blockade of Iranian ports.
“All of the leaders that I met were crystal clear that freedom of navigation is vital and must be restored,” the Prime Minister said.
“No conditions, no tolls and no tolerance of Iran holding the world’s economy to ransom.
“Because, Mr Speaker, the impact of Iran’s behaviour in the Strait is causing untold economic damage.”
He also warned: “We all know the consequences will be significant and that they will last longer than the conflict itself.”
Starmer and Macron to lead meeting
Starmer said industry officials across energy, shipping and insurance would not send vessels “until they are confident that it’s safe to do so”. An international summit led by Starmer and France’s Emmanuel Macron will also be convened this week to focus on the re-opening of the Strait of Hormuz.
Shortly before the Prime Minister’s statement, President Trump warned that US forces would attack Iranian ships if they “come anywhere close” to the blockade, adding strikes would be “quick and brutal”.
The two-week ceasefire has led to confusion around the status of the Strait of Hormuz, with vice-president JD Vance leaving peace negotiations in Pakistan without a full deal.
The ceasefire is also in a precarious situation given Israel has continued its attacks in southern Lebanon against the Iran-backed militant group Hezbollah. Starmer said Israel’s strikes were “wrong” and said the “region remains on edge”.
The US has set up a blockade but traffic across the Strait remains all but clogged up on its sides.
Social media accounts for Iranian leaders and international offices have taunted Trump over the rise in energy prices.
The Brent crude oil price topped $100 per barrel on Monday while UK gas prices also remained higher than where they were before the war started.
Starmer has insisted the UK was not set to be dragged into the war while economists have warned the country stands to suffer a bigger hit to growth and rise in inflation than other advanced economies.