Keir Starmer has cautioned that the longer the conflict between the US, Israel, and Iran persists, the more likely the UK will face economic repercussions. Prime Minister Boris Johnson, however, reassured on Monday that the UK economy is resilient enough to absorb the anticipated impact on households and businesses amidst the ongoing tensions. As Tehran continues to retaliate with missiles and drones in the Middle East, oil prices surged above $100 a barrel for the first time in nearly four years, sparking concerns of a growing crude supply crisis.
In a statement on Monday, Starmer emphasized the government’s proactive approach to collaborate with international partners, assess risks, and mitigate potential economic impacts on the UK population and businesses. He acknowledged the escalating conflict’s potential consequences on the economy and stressed the importance of preemptive measures to address these challenges.
Johnson highlighted the UK’s improved economic stability compared to previous conflicts, noting the efforts made to enhance resilience and manage inflation, which currently stands at 3% and decreasing. He acknowledged public anxiety over the conflict’s implications and assured ongoing monitoring and collaboration with key stakeholders to address risks effectively.
Meanwhile, Chancellor Rachel Reeves is expected to participate in an emergency meeting of G7 finance ministers to discuss the impact of rising oil prices. US President Donald Trump downplayed concerns, stating that the price hikes are a minor sacrifice for global peace. Trump’s remarks on his Truth Social platform emphasized the temporary nature of oil price increases due to the Iran nuclear threat.
Cabinet minister Steve Reed urged motorists not to panic over fuel shortages, emphasizing that adequate fuel and gas stocks are available despite the Middle East conflict. He acknowledged isolated instances of panic buying but reassured the public that the government is closely monitoring the situation to take necessary actions if required.