Starmer says ‘every lever’ will be explored to ease rising costs of living from Iran conflict

Keir Starmer stated the government will explore all available options to address the rising cost of living due to the US-Israel war against Iran. An emergency Cobra meeting, chaired by the Prime Minister, will convene with senior ministers, including the Bank of England governor and the Chancellor, to discuss contingency measures. The meeting aims to mitigate the economic impact of the conflict, which has caused soaring energy prices and increased government borrowing costs. Economists warn the conflict's effects could resemble the 1970s oil shocks, exacerbated by Iran blocking the Strait of Hormuz. Starmer spoke with the US president Sunday night to discuss the conflict.

UK Prime Minister Keir Starmer will chair an emergency Cobra meeting Monday to address the potential economic fallout from a possible war with Iran. Finance Minister Rachel Reeves and Bank of England Governor Andrew Bailey will attend, focusing on the crisis's impact on families, businesses, energy security, and supply chains. The meeting comes amid investor concerns about instability in financial markets after Iran threatened to strike Gulf neighbors' energy and water systems if the US attacks its power grid. Britain is particularly vulnerable due to its reliance on imported natural gas, high inflation, and strained public finances. The energy price shock could push UK inflation back up and further hinder economic growth.