Rachel Reeves said the US-Israeli war against Iran was a mistake, arguing she is not convinced that the conflict has made the world a safer place. In a press conference, she stated that there was a diplomatic channel open with formal discussions happening before the conflict, and she believes it was a mistake to end those and enter into conflict because she is not convinced the world is safer today than a few weeks ago. Reeves emphasized that the question is not about liking the Iranian regime but achieving change effectively, saying she strongly dislikes the Iranian regime but focuses on how to achieve desired change.
Reeves said there is confusion over the aims of Donald Trump's military campaign, questioning the strategy behind the conflict. She noted that diplomatic talks to prevent Iran from getting a nuclear weapon should have been allowed to continue, as Iran does not currently have a nuclear weapon and there was a diplomatic channel open with formal discussions happening before the conflict. According to Reeves, if the aim is to get diplomatic negotiations, they were already happening before the conflict started, and there has been a lack of clarity about the goal of this conflict, which is why the impacts on the economy are immense for the UK, US, and allies in the Gulf. The current status of diplomatic negotiations to prevent Iran from getting a nuclear weapon remains unclear.
The impacts of the conflict on the economy are immense for the UK, US, and allies in the Gulf, according to Reeves. She said a lot of long-term damage has been done to oil and gas facilities in the Middle East, and damage has been done far beyond the duration of the conflict. Reeves elaborated that even if the conflict ends tomorrow, there are longer-term impacts until capacity and refining capability are back at full strength, and damage extends beyond the conflict's duration, but de-escalation and a return to diplomatic negotiations would benefit the global economy. The specific economic impacts on the UK, US, and Gulf allies, as well as the extent of the long-term damage to oil and gas facilities, have not been detailed.
Prime Minister Sir Keir Starmer and French President Emmanuel Macron will lead talks on an international effort to reopen and secure the Strait of Hormuz once the fighting stops, according to major media reports. Reeves said the Strait of Hormuz was open and there was no tolling a few weeks ago, and she argued the best economic policy now for the UK and globally is de-escalation of the Middle East crisis and the reopening of the Strait of Hormuz. She stated that the UK is willing to play its part, but the Strait was open without tolling recently, and she is not convinced the conflict has made the world safer, adding that growth will be higher and inflation lower if the conflict ends through de-escalation, which is important for UK families and businesses. When and how the international effort to reopen and secure the Strait of Hormuz will be implemented is still uncertain.
Amid the conflict, Donald Trump criticized Britain's policies, according to major media reports. The specific policies of Britain that Trump criticized have not been disclosed.