Keir Starmer to consider ‘every lever available’ over Iran cost-of-living crisis

The meeting comes as Donald Trump’s deadline looms for Iran to reopen the Strait of Hormuz, a major oil and gas shipping route, or face the obliteration of its power plants.

Mr Trump’s 48-hour ultimatum expires at 11.45pm.

Financial markets in Europe and Asia fell and oil prices rose as the crisis threatened to escalate.

Oil benchmark Brent crude lifted 1% to nearly 114 US dollars a barrel after Iran warned it will strike electrical plants across the Middle East if Mr Trump follows through on his threat to bomb power stations in the Islamic Republic.

Sir Keir told reporters: “Cobra is the opportunity at the highest level to bring people together on matters of real, significant national importance.

“Obviously Cobras are usually used for military considerations, consular considerations, but I think with the Iran war, most people are very concerned now, not only what they’re seeing on their screens in relation to the conflict itself, but also that question of: ‘How is it going to affect me and my family?’

“And so today we’re looking at the economic impact, and I am asking for every lever that’s available to the Government to deal with the cost of living to be discussed at Cobra.

“Hence we’ve got the Bank of England and others there.

“But I want to make sure that when it comes to the cost of living, we’re doing everything we possibly can at a very difficult period like this.”

Sir Keir spoke to Mr Trump on Sunday night, with the pair agreeing reopening the strait was “essential” to stabilise the global energy market.

The 20-minute call, described by sources as “constructive”, followed a week in which Mr Trump had heavily criticised Sir Keir’s response to the crisis amid the president’s demand for other nations to send ships to open the strait.

It came after Mr Trump posted a skit from Saturday Night Live UK mocking Sir Keir as being scared of talking to the president.

Iran has attempted to strike the UK-US military base on Diego Garcia in the Indian Ocean with missiles, prompting concerns that Britain could be within range of Tehran’s attacks.

But Sir Keir told reporters on a visit in south London “no missiles hit the Chagos Islands” but “there were two heading in that direction”.

He played down the risk of the UK being subjected to a direct attack from Iranian missiles.

“There’s no assessment that we’re being targeted in that way at all,” he said.

“But of course, it’s my job to ensure that British interests, British lives are always uppermost in my mind.

“What we need here is de-escalation and that’s why we had a statement from a number of countries last week about what we need to do about the Strait of Hormuz, which obviously needs careful co-ordination and a viable plan, but it’s very important, we defend our interests, we defend British lives, but without getting dragged into the war.”