British Prime Minister Keir Starmer warned on Monday that the Iran war could prolong the cost-of-living crisis for months, as he led an emergency Cobra meeting to assess its economic impact. The meeting, attended by Bank of England Governor Andrew Bailey, discussed rising inflation and energy bills, with ministers preparing contingency plans for targeted support next winter.
Starmer emphasized the need for swift de-escalation but cautioned that the conflict could last "for some time." He ruled out immediate bailouts for struggling families and businesses, instead focusing on measures to prevent profiteering and accelerate renewable and nuclear energy projects.
Meanwhile, the UK government designated military action against Iran as "collective self-defence," allowing strikes on Iranian missile systems threatening shipping in the Strait of Hormuz. Iranian officials warned that Britain's actions would be considered aggression, while U.S. President Donald Trump threatened infrastructure attacks on Iran. The UK confirmed it would not intervene to stop such an attack.
Reports of Iranian missile strikes on the Diego Garcia base raised concerns, though Starmer downplayed military considerations, emphasizing economic threats like disrupted energy supplies and volatile markets.