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UK government convenes emergency meeting on economic fallout
Prime Minister Sir Keir Starmer will chair an emergency Cobra committee today to address the economic impact of the Iran conflict, with Bank of England Governor Andrew Bailey and senior ministers in attendance.
US delays military strikes after diplomatic progress
US President Donald Trump announced a five-day postponement of military action against Iranian energy infrastructure following two days of "productive" discussions with Tehran. The delay comes as both sides engage in talks aimed at resolving Middle East hostilities.
Trump stated on TruthSocial that conversations would continue throughout the week, describing them as "in depth, detailed, and constructive." Oil prices and the FTSE 100 index rebounded following his announcement.
Strait of Hormuz remains closed as tensions persist
Iran has maintained its blockade of the Strait of Hormuz, a critical oil shipping route, since late February after US and Israeli strikes on Iranian targets. Trump had previously threatened to "obliterate" Iranian power plants if the strait was not reopened within 48 hours.
Tehran responded by warning it would target US-linked energy sites across the Gulf if the US carried out its threat, according to Iranian state media. On Sunday, Starmer and Trump discussed the urgent need to reopen the waterway.
Cobra meeting to focus on economic and energy security
The emergency session will cover energy security, the cost of living crisis, and the conflict's impact on businesses and supply chains. Attendees include Chancellor Rachel Reeves, Foreign Secretary David Lammy, and Energy Secretary Ed Miliband.
Housing Minister Matthew Pennycook told the BBC that the government is evaluating "a range of options," including measures to address potential fuel retailer profiteering.
"I am asking for every lever available to the government to deal with the cost of living to be discussed at Cobra," Starmer told reporters. "We must ensure we are doing everything possible during this difficult period."
Political divisions emerge over energy policy
Conservative leader Kemi Badenoch urged Starmer to adopt the Tories' "cheap power plan," calling for North Sea drilling, carbon tax cuts, and the cancellation of a fuel duty increase.
Green Party leader Zack Polanski argued for stronger measures, proposing a tighter windfall tax on oil and gas profits, equal taxation of wealth and income, and increased investment in renewables and energy efficiency.
UK denies being a direct target of Iranian threats
Starmer reiterated that there is "no assessment" the UK is being specifically targeted by Iran, despite the Israel Defense Forces (IDF) reporting that Tehran possesses weapons with a range of up to 4,000km (2,485 miles).
He confirmed that two Iranian missiles were intercepted en route to the US-UK military base on the Chagos Islands in the Indian Ocean, calling the attack "reckless." The UK has since authorized US forces to use British bases for strikes on Iranian targets in the Strait of Hormuz, expanding from their previous defensive-only role.
Government support measures
The UK has already allocated £53 million to assist households struggling with rising heating oil costs. Further decisions on economic relief are expected following today's Cobra meeting.
