Dire analysis by experts at Item Club warned that South Wales and the Humber could be hardest hit as a direct result of the war in Iran, with over 160,000 jobs set to be shed
Donald Trump’s haphazard Iran war will lead to over 160,000 job losses in the UK, a grim report found.
Regional analysis by the Item Club found that South Wales and the Humber are the two areas set to suffer the worst effects. Sharp energy prices as a result of the Middle East conflict will hit the manufacturing and construction industries hardest, experts warned.
Tim Lyne, economic adviser to the Item Club, said: “Some of the lowest income regions will feel the biggest effects of the manufacturing and construction sectors reducing headcount in the face of rising energy prices and supply chain disruption.”
He said this will create a knock-on effect in the retail and hospitality sectors as household budgets tighten.
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On Tuesday the UK and France will bring together defence chiefs from around the world to discuss plans to protect the crisis in the Strait of Hormuz. British warship HMS Dragon is deploying to the Middle East as leaders hammer out a plan to keep the vital trade route open once fighting ceases.
The UK says any operation will be strictly defensive focusing on restoring confidence for commerical shipping. Defence Secretary John Healey said: “The UK is leading this multinational, defensive mission because trade, energy, and economic security for working people here at home depend on it.
“We are turning diplomatic agreement into practical military plans to restore confidence for shipping through the Strait of Hormuz. When I co-chair this meeting of nations from around the world, our job will be to make sure we are not just talking, we are ready to act.”
Mr Trump has repeatedly promised the Middle East war will be over quickly, but there has been no sign of an end since the US and Israel launched strikes in February.
On Sunday Pakistani Prime Minister Shehbaz Sharif said Iran has responded to peace accords – but did not say what the response said.
There have been reports that a 14-point memorandum of understanding could lead to negotiations on Iran’s nuclear ambitions. The conditions are said to include restoring free transit through the Strait of Hormuz, which transports 20% of the world’s oil and natural gas.
The Iranian Isna news agency said Iran’s response focuses on “ending the war and maritime security” in the Gulf. Iranian President Masoud Pezeshkian said: “We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat.”