Chancellor Rachel Reeves’s comments to CBNC came after she told The Mirror earlier this week the conflict was a ‘folly’ with no clear exit plan hitting families in the UK
Rachel Reeves has said the US-Israeli war against Iran is a “mistake”, adding: “I’m not convinced that this conflict has made the world a safer place”.
The Chancellor comments to CNBC came after she told The Mirror earlier this week entering the conflict with no clear exit plan was a “folly” and said she was angry and frustrated with America’s actions.
Speaking to the US network as she attended the International Monetary Fund (IMF) spring summit in Washington DC, Ms Reeves said diplomatic talks to prevent Iran from getting a nuclear weapon should have been allowed to continue.
She said: “The question is not whether you like or dislike the Iranian regime – I strongly dislike the Iranian regime – but how to achieve the change that you want to achieve.”
The Chancellor added: “There was a diplomatic channel open, conversations, formal discussions were happening. I think it was a mistake to end those and to enter into conflict, because I’m not convinced that we are safer today than we were a few weeks ago.”
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Earlier, Ms Reeves and international allies warned the conflict with Iran has led to “unacceptable loss of life” and global economic turmoil. In a joint statement on Wednesday the Chancellor and finance ministers from 11 countries including Australia and Japan warned the impact of the conflict could linger.
In a bleak warning, they said even with a “durable resolution of the conflict, impacts on growth, inflation and markets will persist”. With a fragile ceasefire in place, they also demanded a swift reopening of the Strait of Hormuz – a vital shipping route for global oil and gas supplies.
They said: “Renewed hostilities, a widening of the conflict or continued disruption in the Strait of Hormuz would pose serious additional risks to global energy security, supply chains, and economic and financial stability.”
The Chancellor, who is drawing up targeted support for the most vulnerable if necessary, cautioned against knee-jerk responses to the cost-of-living crisis triggered by the war.
Ms Reeves is also due to meet US Treasury Secretary Scott Bessent on Wednesday evening after lashing out at America’s “folly” in the Iran war. The top Trump administration figure claimed a “small bit of economic pain” caused by the US-Israeli war with Iran was worth it to prevent Tehran getting a nuclear weapon.
He insisted “there is nothing more transient than what we are seeing now”, and added: “So the conflict will end, prices will come down, and then headline inflation will come down, and with that, gasoline prices will come down.”
Mr Bessent’s comments put him at odds with the Chancellor, who told The Mirror this week she was frustrated and angry at the US war in Iran and the impact on families and firms in the UK and hit out at the lack of an exit plan.
She added: “Obviously no sensible person is a supporter of the Iranian regime, but to start a conflict without being clear what the objectives are and not being clear about how you are going to get out of it, I do think that is a folly and it is one that is affecting families here in the UK but also families in the US and around the world.”
Mike Clancy, the General Secretary of the Prospect trade union, said: “The Chancellor is right to say that this war is ‘folly’ and we share her anger at the reckless and stupid actions of the President, but the reality is that it is working people across the UK that will pay the price for this madness.
“The government may not control the prices at pumps, but they do control the pay packets of millions of public sector workers – those workers need a fair deal that doesn’t leave them worse off than they were last year. A government that is campaigning on the cost of living, can’t also be a government that forces real terms pay cuts on its staff, and my union will be making that very clear in upcoming pay talks.”