31st Mar 2026 02:27
(Alliance News) - UK Prime Minister Keir Starmer will chair a Cobra meeting on Tuesday afternoon, where senior ministers will discuss the economic impact of the Iran war.
The Prime Minister said on Monday that the Cobra meeting will look at "making sure that everything that we need to have in place, everything is monitored and audited properly".
It comes after Starmer told business chiefs in Downing Street on Monday that it must be a "joint effort" to tackle the impact of the war, saying the government "can't do it on its own".
Bosses from energy, shipping and banking firms were invited to Number 10 to discuss Iran's ongoing blockade of the Strait of Hormuz, which has disrupted a vital shipping route for the oil and gas industry.
The crisis has pushed up prices and caused economic uncertainty around the world.
Representatives from firms like Shell PLC and BP PLC , shipping giant AP Moller Maersk, maritime insurance specialist Lloyds Banking Group PLC and banks HSBC Holdings PLC and Goldman Sachs Group Inc were told that the government is working on a "viable plan" for the Strait of Hormuz.
On tackling the economic impact of the crisis, Starmer told the executives: "The government can't do it on its own. You can't do it on your own.
"We're going to have to work together on this."
Meanwhile, Chancellor Rachel Reeves met with G7 finance and energy ministers on Monday to consider ways to respond to the economic hit of the crisis in the Middle East.
Alongside Bank of England governor Andrew Bailey and Energy Secretary Ed Miliband, Reeves attended the virtual meeting of ministers from the G7, which consists of the UK, US, Germany, France, Italy, Canada and Japan.
Writing on X after the meeting, Reeves said: "At today's G7 talks with Bank of England (governor) Andrew Bailey and Ed Miliband, I reiterated the need for a swift resolution in the Middle East.
"This is not our war and we won't be drawn into it, but its economic impacts are global – we must work with partners to strengthen resilience."
Defence Secretary John Healey is in the Middle East to speak to the UK's allies in the Gulf.
Meanwhile, US President Donald Trump threatened the destruction of Iran's energy infrastructure and possibly its water desalination plants unless the Strait of Hormuz is "open for business".
The Prime Minister has pleaded for de-escalation in the Middle East, but Trump has sent thousands of extra US troops and raised the prospect of military action to seize Iran's Kharg Island, a crucial facility for oil exports.
In a post on Truth Social, Trump said the US had made "great progress" in discussions with a "more reasonable" Iranian regime to end the war triggered by the US-Israeli strikes.
The cost of oil benchmark Brent crude lifted more than 3% to 117 dollars a barrel at one stage in Monday morning trading, reaching levels not seen since 2022.
The impact of the ongoing Strait of Hormuz blockade was compounded by Iran-backed Houthis in Yemen launching strikes against Israel, raising the possibility of attacks on Red Sea shipping.
Diesel prices have reached their most expensive level since December 2022, with the average price of a litre of the fuel at UK forecourts on Monday hitting 181.2p according to RAC analysis.
That represents a 27% increase from 142.4p on February 28, the day the war in the Middle East began.
Average petrol prices have reached 152.0p per litre, a rise of 14% from 132.8p over the same period.
By Abbie Llewelyn, David Hughes and Helen Corbett, Press Association Political Staff
source: PA
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