Rachel Reeves will deliver a statement today on the unfolding crisis in the Middle East after emergency talks with G7 allies.
The Chancellor’s Commons statement – less than a week after her Spring Statement – comes after Keir Starmer warned of the possible hit to the UK economy the longer the US-Israeli war with the Iranian regime rages on. He also said he understood the public’s anxiety over the conflict as Tehran continued to retaliate with missiles and drones across the Middle East.
His comments followed oil prices rocketing above $100 a barrel for the first time in nearly four years as the escalating conflict in Iran sparks a mounting crude supply crisis. Earlier, Ms Reeves joined an emergency meeting of G7 finance ministers to discuss the crisis.
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Emergency G7 meeting wraps up
The UK and its G7 allies will “continue to closely monitor the situation and developments in the energy markets” in response to the war with Iran, a joint statement from finance ministers in the group of nations said.
The ministers, including Chancellor Rachel Reeves, said: “We, the G7 finance ministers, held a virtual meeting on March 9, together with the Heads of the International Monetary Fund (IMF), World Bank Group (WBG), Organisation for Economic Co-operation and Development (OECD), and International Energy Agency (IEA).
“We discussed the current conflict in the Middle East, its impact for regional stability, global economic conditions, and financial markets, and the importance of secure trading routes.
“We will continue to closely monitor the situation and developments in the energy markets and will meet as needed to exchange information and to co-ordinate within the G7 and with international partners.
“We stand ready to take necessary measures, including to support global supply of energy such as stockpile release.”
Iran war ‘could send fuel prices soaring to 180p’ as mortgage costs begin to rise
Pump prices broke the 150p a litre barrier and mortgage costs reached almost 5% as the impact of the Middle East war on ordinary UK households deepened.
The ongoing conflict also saw nearly £30billion wiped off UK share prices amid a global stock market rout on Monday.
With inflation expected to be pushed back up, a Bank of England rate cut next week now seems to have evaporated, with even talk of a potential increase in borrowing costs at some stage. The most immediate fall-out has been from a surge in oil prices, which spiked to a four-year high of nearly $119 a barrel in early trading on Monday.
Rachel Reeves Commons statement expected around 4.15pm
Chancellor Rachel Reeves is expected to deliver a Commons statement on the crisis in the Middle East shortly after 4pm. It comes after oil prices rocketed above $100 a barrel for the first time in nearly four years as the escalating conflict in Iran sparks a mounting crude supply crisis.
Earlier she held emergency talk with G7 partners over the conflict.
Keir Starmer in UK economy warning as Middle East war rages on
Keir Starmer warned earlier today the longer the US-Israeli war with the Iranian regime rages on the more likely it is there will be an economic hit to the UK.
But the Prime Minister insisted on Monday morning the economy was strong enough to absorb the “likely impact” on households and firms. He also said he understood the public’s anxiety over the conflict as Tehran continued to retaliate with missiles and drones across the Middle East.
He said: “It is important to acknowledge that that work is needed, because people will sense, you will sense I think, that the longer this goes on, the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business. And our job is to get ahead of that, to look around the corner, assess the risk, monitor the risks, and work with others in relation to that.”