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Reeves Calls Iran War a Mistake
Reeves sharply criticized the US-Israeli war on Iran as a mistake that had not made the world safer.
“The best economic policy now, not just for the UK, but globally, is to de-escalate”
She said there was a diplomatic channel open and it was a mistake to end those and enter into conflict.
The UK government has said it will not play any role in the US's military blockade of the Strait of Hormuz.
Trump responded by saying the special relationship has been better, but it's sad.
The IMF cut its UK growth forecast to 0.8% from 1.3% in January.
Economic Fallout and Energy Security
Reeves warned that the war's economic impact would be severe and long-lasting.
Energy prices had soared since the conflict began.
The Strait of Hormuz moves one-fifth of the world's oil and gas supplies.
The IMF warned the UK could be the hardest hit of the world's advanced economies.
Reeves signed a joint statement warning of serious additional risks to global energy security.
Fraying Transatlantic Relations
Reeves's remarks laid bare the extent to which the fighting has strained relations between the US and key European allies.
“The prime minister hit back on Wednesday, telling MPs he was not going to yield”
Trump threatened to rip up the bilateral trade deal with the UK.
Sir Keir Starmer insisted he won't yield to Trump’s pressure.
Reeves said the US-UK relationship is long, lasting and enduring.
She described the war as a folly and hit out at Trump for failing to have an exit plan.
Domestic Political Impact
Reeves faced pressure at home as well.
She felt deep frustration and anger that the US went into this war without a clear exit plan.
The closure of the Strait of Hormuz has pushed up costs for UK families and businesses.
Reeves has signaled that any energy bill help will be targeted at the poorest households.
The IMF suggested the UK will be the hardest hit of any major advanced economy.