Starmer calls for deal with Iran as Middle East war 'puts added pressure on cost of living' amid surging prices
Donald Tump has urged Israel's Prime Minister to halt further strikes as oil and gas prices continue to soar around the world
Sir Keir Starmer has said he recognises the “pressure rising costs puts on families” as the conflict in the Middle East threatens to drive up the cost of day-to-day purchases.
Listen to this article
The Prime Minister admitted that the longer the conflict continues, “the bigger the impact on the cost of living,” arguing that “the best way forward is a negotiated settlement with Iran”.
The PM had previously said the UK will not be drawn into the wider war in the Middle East amid mounting concerns over US demands, with UK defence secretary John Healey vowing to “step up” defensive support for Gulf states, including Qatar.
Since the outbreak of war, the price of oil and gas has soared, putting further pressure on already-battered household budgets in the UK and many countries worldwide.
Tehran’s throttling of the key Strait of Hormuz shipping route and attacks on energy facilities across the Gulf have heightened concerns about the security of the supply of fossil fuels.
As households brace for a further squeeze on their wallets, the government will set out new measures on Friday to revamp neighbourhoods in the south east of England as part of the Government’s Pride in Place programme.
Housing Secretary Steve Reed will meet local people and community leaders to discuss ministers’ efforts to protect their finances on Friday.
Ahead of Friday’s visit, Sir Keir said: “I know how much pressure rising costs can put on families here in the South East and beyond – especially when there is uncertainty on the global stage.
“That’s why this Government is acting to protect household budgets, keep everyday costs down and provide reassurance at home – while listening directly to people about what matters most to them.”
The Bank of England governor Andrew Bailey said last night reopening the Strait of Hormuz is the “best thing to do” to prevent interest rates rising, after a vote to leave the rate unchanged at 3.75% on Thursday.
Mr Bailey said any further cuts are “not on the horizon” as he hinted at possible hikes, adding that the war in the Middle East will likely increase household energy costs in summer and put pressure on food prices.
He told LBC’s Tonight with Andrew Marr: “The duration of this problem is crucial.
“I would also say very clearly that the best way to solve this situation is not through monetary policy. It is through sorting out the source of what’s going on.
“Frankly, reopening the Strait of Hormuz is the best thing to do. Get the energy market back on its normal footing, as it were.”
It comes as Israel's Prime Minister Benjamin Netanyahu said the ongoing conflict in Iran could end 'a lot faster than people think', after Donald Trump urged his ally to "hold off" further strikes on Iran's gas fields amid soaring energy prices.
Saudi Arabia threatened to hit Iran overnight following attacks on oil and gas sites across the Gulf, with energy prices soaring and oil hurtling towards $200-a-barrel.
In a press conference on Friday, Mr Netanyahu vowed to "hold off" future attacks on Iranian gas fields following a direct request from President Trump.
Netanyahu was also seen to reject accusations that he'd 'dragged' Donald Trump into the ongoing war with Iran.
Declaring the Middle East has now changed "beyond recognition", the PM insisted Israel still has "more to do" in the wake of ongoing attacks.
"We have brought our friend the US to a cooperation never seen in history," he says."The great collaboration between myself and my good friend Trump is unprecedented."
It comes as strikes targeting Qatar's largest liquefied natural gas (LNG) plant, the Ras Laffan facility, are set to cost Qatar billions of dollars.
The exporter's gas supplies are now forecast to fall by almost 17% over the next five years as a result of the damage, with LFG being a fuel source heavily relied upon by the West.
It comes amid reports that the death toll in Iran has reached 3,186 people since the start of the conflict on February 28, according to US-based Human Rights Activists News Agency (Hrana).
Overnight, Saudi Arabia issued a stark warning to its neighbour, with Prince Faisal bin Farhan, the Saudi foreign minister, warning that the Kingdom's patience with Tehran is wearing thin.
The statement came after Iran hit an oil refinery and fired eight ballistic missiles at Riyadh.
“This pressure from Iran will backfire politically and morally and certainly we reserve the right to take military actions if deemed necessary,” he said.
In recent days, the Iran war has entered a new phase following the Israeli strike on the South Pars gas field.
The strikes, which were condemned by US President Donald Trump, saw the Islamic Republic declare energy site in Saudi Arabia, the United Arab Emirates, and Qatar.
After the warning, Iranian strikes hit a liquid natural gas (LNG) facility in Qatar before taking aim at Saudi Arabia.
The attacks on the Ras Laffan plant in Qatar caused damage that will take years to repair and sent prices up by 35 per cent.
The fallout from the new phase of the war could severely impact Britain, which relies on LNG for 35 per cent of its domestic energy use.
Despite the price of oil rising by eight per cent to $116-a-barrel on Thursday, President Trump sought to reassure Americans.
“It will be over soon,” he said. “We had great everything and I saw all that was happening in Iran, and I said, ‘I hate to make this excursion, but we’re going to have to do it.’ I actually thought the numbers would be worse. I thought that it would go up more than it did,” he added.
In response to the attack on South Pars on Wednesday, the President wrote on Truth Social: "Israel, out of anger for what has taken place in the Middle East, has violently lashed out at a major facility known as South Pars Gas Field in Iran."
He went on to claim he had no prior knowledge of the strikes and defended Qatar, branding Iran's actions "unjustifiable".
"A relatively small section of the whole has been hit. The United States knew nothing about this particular attack, and the country of Qatar was in no way, shape, or form, involved with it, nor did it have any idea that it was going to happen."
Referring to reprisal attacks from Iran on the Qatari LNG facility, Trump added: "Unfortunately, Iran did not know this, or any of the pertinent facts pertaining to the South Pars attack, and unjustifiably and unfairly attacked a portion of Qatar’s LNG Gas facility."