Reeves tells Americans Trump’s Iran war is a ‘mistake’

British Chancellor Rachel Reeves criticized Donald Trump's war on Iran during an event in Washington, stating it was a "mistake" that has destabilized the global economy and negatively impacted living standards. Speaking ahead of IMF meetings, Reeves expressed frustration with the lack of a clear US exit plan and argued that the conflict has worsened the situation, including the closure of the Strait of Hormuz. She advocated for the urgent reopening of the waterway to calm global energy prices. Reeves emphasized that diplomacy, rather than conflict, is the best way to prevent Iran from developing nuclear weapons, highlighting that diplomatic channels were previously open. She stated her goal at the IMF meetings was to convey the message that the conflict is harming living standards worldwide and requires urgent de-escalation.

The International Monetary Fund (IMF) lowered its global economic growth forecast for 2026 from 3.3% to 3.1% due to escalating tensions between the US and Iran, beginning in late February 2026. Iran's subsequent closure of the Strait of Hormuz and attacks on regional energy infrastructure have driven up oil and gas prices, contributing to a higher global inflation forecast of 4.4%. The IMF anticipates the largest GDP growth declines in countries closest to the conflict and those reliant on energy imports. The Middle East and North Africa's growth forecast was cut by 2.8 points to 1.1%, while Iran's outlook experienced a significant revision, forecasting a 6.1% contraction. The IMF highlights the policy trade-offs between fighting inflation, preserving growth, and supporting those affected by the rising cost of living.