Starmer warns Strait of Hormuz reopening “will not be easy” as Iran war hits energy bills
Prime Minister Keir Starmer has set out a package of cost of living measures and a new diplomatic push as he warned that reopening the Strait of Hormuz following the Iran war “will not be easy.”
Speaking from Downing Street on Wednesday morning, Mr Starmer said the Iran war “will impact the future of our country” but that the UK is “well-placed to weather it.”
He said: “I want to reassure the British people that no matter how fierce this storm, we are well-placed to weather it, and that we have a long-term plan to emerge from it a stronger and more secure nation.”
The war entered its second month after the US and Israel began a series of strikes on Iran in February.
Significant proportions of the world’s oil and gas supplies pass through the Strait of Hormuz, but traffic through the lane has fallen sharply since the strikes, with Iran threatening to attack ships passing through it.
The disruption is pushing energy prices up around the world.
The Food and Drink Federation has estimated that food inflation will hit 9% in the UK this year as a result of the conflict.
Mr Starmer confirmed that Foreign Secretary Yvette Cooper will host a meeting of 35 nations later this week to assess diplomatic and political measures to restore freedom of navigation through the Strait.
Military planners will also be convened to look at how the UK and its partners can make the Strait accessible and safe once the fighting has stopped, the Prime Minister said.
On the cost of living, Mr Starmer confirmed that energy bills are being cut by more than £100 per household today, as part of action taken at the Budget.
The cut fixes the price until July, when the Ofgem price cap is due to expire.
The Government is expected to announce further support for households most exposed to rising energy prices before that point.
For Flintshire households not connected to the gas grid and dependent on heating oil, Mr Starmer said £53 million has been set aside to support people facing rising costs.
A significant number of rural properties across Flintshire rely on heating oil as their primary heating source.
The cut in fuel duty has been extended until September, with the Prime Minister saying the situation is being monitored daily.
Prescription prices will be frozen for a year from today.
From next week, the state pension will increase and the two-child benefit limit will be scrapped, a move the Prime Minister said would lift 450,000 children out of poverty, the vast majority from working households.
New workers’ rights legislation will also become law next week, which Mr Starmer described as the biggest strengthening of employment rights in a generation.
Workers on the national living wage will see their pay rise today.
Mr Starmer said: “I am sick and tired of your energy bills fluctuating up and down because we are on the International Market — when if we took control of our energy and had home grown renewables, we could stabilise your bills.”
On the longer term, Mr Starmer said the UK’s national interest now requires closer partnership with the European Union, and announced a new EU summit later this year.
The Prime Minister indicated he wants to take the UK closer to the EU’s single market as part of the reset.
He said: “We want to be more ambitious, closer economic cooperation, closer security cooperation, a partnership that recognises our shared values, our shared interest and our shared future.”
The announcement is likely to be of particular interest in Deeside, where Airbus Broughton manufactures wings for Airbus commercial aircraft as part of a supply chain that spans the UK and Europe.
On Tuesday, US President Donald Trump said the US would pull out of Iran “in two or three weeks” and indicated he would give an update on the war in the early hours of Thursday morning.
Buckingham Palace confirmed on Tuesday that King Charles and Queen Camilla’s state visit to the US will go ahead this month.
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