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UK pushes for closer EU cooperation as Iran war disrupts economy
Prime Minister Sir Keir Starmer announced plans to strengthen economic and security ties with the European Union during an upcoming summit, citing the fallout from the Iran conflict as a key driver. The move comes as tensions with the U.S. rise over the UK's refusal to deepen involvement in the war.
Economic pressures mount amid energy cost fears
Starmer acknowledged the war's impact on the UK but stressed the government was acting to mitigate rising living costs. Measures taking effect this month include removing certain green levies from energy bills and increasing the national living wage.
Opposition parties are demanding immediate action to shield households from soaring energy prices. The Conservatives and Reform UK are calling for VAT to be scrapped on household energy bills and the planned September fuel duty hike to be canceled. The Liberal Democrats and Greens also oppose the fuel duty increase, with the latter urging billions in subsidies to offset July's energy price cap adjustment.
The Organisation for Economic Co-operation and Development (OECD) warned the UK faces the largest economic growth hit among major economies due to the conflict.
Fuel duty and energy support under review
When asked about the fuel duty hike, Starmer said the rate remains unchanged until September but noted support for households would depend on the conflict's duration and the reopening of the Strait of Hormuz. Iran's blockade of the critical oil shipping route has sent wholesale energy prices surging, threatening higher UK household bills when the price cap resets in July.
Diplomatic efforts to reopen Strait of Hormuz
The Foreign Secretary is hosting a meeting with 35 nations, including European and Gulf states, on Thursday to discuss measures to restore safe passage through the strait once fighting subsides. Starmer called the effort "challenging" but vital to UK national interests.
Brexit's economic damage fuels push for EU rapprochement
Starmer framed closer EU ties as urgent, arguing Brexit "deeply damaged" the UK economy. He emphasized opportunities to bolster security and reduce living costs through partnership, though he ruled out rejoining the single market, customs union, or restoring freedom of movement-commitments outlined in Labour's election manifesto.
The Liberal Democrats urged the government to negotiate a customs union with the EU, while the Conservatives accused Starmer of using Brexit as a scapegoat for his policies.
Balancing U.S. and EU relations amid NATO tensions
Pressed on whether he was prioritizing Europe over the U.S., Starmer insisted the UK could maintain strong ties with both. He argued closer EU cooperation would strengthen transatlantic relations, aligning with U.S. calls for Europe to take greater responsibility for defense.
Former U.S. President Donald Trump, who has criticized Starmer's refusal to allow UK bases for offensive strikes against Iran, recently suggested he might withdraw from NATO if European allies did not join his war efforts. Starmer reaffirmed the UK's commitment to NATO, calling it "the most effective military alliance in history" and vowing to act in Britain's national interest.
"Whatever the pressure, whatever the noise, I'm going to act in the British national interest. This is not our war, and we're not going to get dragged into it."
Sir Keir Starmer, UK Prime Minister
Summer summit to expand UK-EU cooperation
A UK-EU summit this summer is expected to go beyond last year's agreements on fishing, trade, defense, and energy. Starmer described the upcoming talks as "more ambitious," signaling potential advances in single market alignment for economic benefit.
