Keir Starmer said the UK ecomomy is well placed to weather the storm – but he faces calls to prepare for huge intervention as a result of Donald Trump’s war in the Middle East
Keir Starmer has insisted the UK economy is well placed to weather the storm as the Iran war crisis deepens.
The PM said he would not allow Britain to be drawn into a wider war in the Middle East – but warned of uncertainty ahead. Ministers face calls to plan for further intervention to stave off “Trumpflation”.
Speaking at a Downing Street press conference, Mr Starmer said the UK is working with allies to draw up a viable plan to reopen the crucial Strait of Hormuz. He has so far refused to commit warships to protect the vital shipping route, as demanded by Donald Trump – saying international consensus is needed.
Mr Starmer said: “While taking the necessary action to defend ourselves and our allies, we will not be drawn into the wider war.” And he added: “I want to see an end to this war as quickly as possible, because the longer it goes on, the more dangerous the situation becomes, and the worse it is for the cost of living back here at home.”
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The crisis in the Middle East threatens to drive up fuel prices – which will have knock-on effects across the economy. The Strait of Hormuz is a key chokepoint linking the Persian Gulf and the Gulf of Oman, through which around 20% of the world’s oil and gas is transported.
Traffic through the 104 mile route has dropped off in the past night amid fears of missile and drone attacks. Mr Starmer said: “We’re working with all of our allies, including our European partners, to bring together a viable collective plan that can restore freedom of navigation in the region as quickly as possible and ease the economic impacts.”
He admitted that the unfolding crisis – which began when the US and Israel launched a barrage of missiles on Iran on February 28 – has caused widespread alarm in the UK. The PM announced a £53million package to support those who rely on oil to heat their homes, who are not protected by the energy price cap.
This includes £27million in England, £17m in Northern Ireland, £4.6m in Scotland and £3.8m in Wales. But the PM was bullish about the UK’s resiliance in the face of a fresh cost of living challenge.
He also announced the Government had issued a legal direction ordering energy companies to pass on savings to customers. He said: “The British economy is a better place than it otherwise would have been to weather the storm.
“Since the election (in 2024), we built up our national resilience. We are delivering the biggest uplift in defence spending since the Cold War. We’re investing in clean British power to boost our energy security and protect people working from volatile fossil fuel markets.
“And because we have brought stability back to our public finances – stability that I will never put at risk – we are in a better position today than we were at the start of the Ukraine war four years ago.
“Back then, inflation was 5% but rising. We brought it down to 3%.” Mr Starmer admitted, however, that more action may be needed in the coming months.
The Ofgem price cap for energy bills remains in place until June 30, and a 5p cut to fuel duty is in place until the end of August. But he said support will be kept under review, stating: “My instinct is always to help working people in a situation like this.”
He said: “As to what might happen in three months, or six months, I’m not going to stand here and pretend to you that we know what the situation will be in three or six months’ time.
“We don’t. The best way to do this is to de-escalate, and reduce friction, because that is the most effective way to do it for a living.” It comes after Trump again lashed out at Mr Starmer’s refusal to let UK bases be used in the initial wave of attacks on Iran.
The US President told the Financial Times: “The UK might be considered the number one ally, the longest serving et cetera and when I asked for them to come, they didn’t want to come,” he told the Financial Times.
“And as soon as we basically wiped out the danger capacity from Iran, they said, ‘oh well we’ll send two ships’, and I said, ‘we need these ships before we win, not after we win’.”
And implying the Nato alliance could be at risk, he ominously said: “I’ve long said that Nato is a one-way street.” TUC General Secretary Paul Nowak said: “Working people are being hit with a Donald Trump-made cost of living crisis. It’s right that the Prime Minister has acted quickly to support those most acutely affected by rising energy prices.
“This illegal war and ongoing chaos will continue to threaten living standards. More support will likely be needed to stave off ‘Trumpflation’.
“The Prime Minister is right to call for rapid deescalation in the Middle East. The Government must stand ready to pull out all the stops and shield households and firms from this global shock.”
In a major update to MPs, Defence Secretary John Healey said: “Our outstanding armed forces are in the Middle East protecting our people, our interests and our allies.
“The RAF have conducted now over 550 hours of defensive operations in five countries, and drones have been shot down by UK forces almost daily. We now have more jets flying in the region than any time in the last 15 years.”
