Keir Starmer to hold emergency Cobra meeting after Iran war sparks 'inescapable' price rises
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There are increasing concerns about how the Iran conflict could affect the cost of living, and the Government is keen to deter people from panic-buying fuel.
Cabinet ministers are expected to join Sir Keir, including Chancellor Rachel Reeves, Foreign Secretary Yvette Cooper and Energy Secretary Ed Miliband, as well as the governor of the Bank of England.
As well as the economic impact of the crisis, they will discuss energy security and the resilience of industry and supply chains alongside the international response.
On Sunday, the chief executive of Centrica, which owns British Gas, said global oil supplies are already down 20% because of the conflict.
Chris O'Shea said: "Cornwall Insight, I think, have predicted that there's going to be an increase in prices.
"If it stays as it is then I think that's inescapable.
"The world uses about 100 million barrels of oil a day. We've lost about 20% of that through the Strait of Hormuz."
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Housing minister Steve Reed, meanwhile, urged people to carry on as normal.
He told Sky News: "There's no need to ration fuel. People should go around and buy their fuel just like they always would.
"If the situation were to change, then the Government would look at what was required in that circumstance."
Lord Richard Walker, the cost-of-living tsar, said he had "asked the Government to consider a temporary profit cap, if required, to stop producers and retailers exploiting the crisis to make windfall profits at the expense of consumers".
Sir Keir Starmer spoke to US President Donald Trump on Sunday about the need to reopen the Strait of Hormuz.
The call lasted for 20 minutes and was constructive, it is understood.
The president has criticised Sir Keir's response to the war last week, describing him as "no Winston Churchill".
The Conservatives have said the Government should scrap "green taxes" to cut costs, and shadow housing secretary Sir James Cleverly suggested North Sea oil and gas fields should be opened.
Ministers have said the UK will not be dragged into a wider war in the Middle East, but Iran's missile attack on the joint US-UK base Diego Garcia has demonstrated that Europe could now be within reach.
Israeli Prime Minister Benjamin Netanyahu said Iran has "everyone in their sights".
He told reporters: "I've been warning all the time. They have now the capacity to reach deep into Europe.
"They already have fired on a European country, Cyprus.
"They are putting everyone in their sights."
Early on Sunday, Mr Trump wrote on Truth Social that Iran had 48 hours to "FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz", or the US would "obliterate" Iran's power plants.
Mr Reed would not be drawn on whether he backs the deadline, but said a swift end to the war would be the best way to alleviate price rises.