UK Prime Minister Keir Starmer will deliver a national address by 10 AM local time (2:30 PM IST) to discuss the Middle East conflict and the rising cost of living.
This comes after US President Donald Trump and Australia’s Anthony Albanese announced similar addresses within the next 24 hours, with Albanese scheduled for 7 PM AEDT on Wednesday and Trump at 12 PM AEDT on Thursday.
Keir Starmer has been highlighting the measures his government is taking to help people cope with the rising cost of living, even as he faces increasing calls to introduce more support due to the economic fallout from the Iran crisis.
Earlier on Tuesday, Starmer wrote on Facebook, “I know people are worried that global instability will impact prices at the pump and at the checkout. We’re working hand in hand with industry leaders to make sure we can deliver economic stability at home and keep the cost of living down. And because of the decisions my government has taken, our economy is better placed to weather these shocks.”
Iran’s control over the Strait of Hormuz, the narrow waterway at the exit of the Persian Gulf through which about one‑fifth of the world’s oil normally flows, has contributed to rising global energy prices.
Brent crude, futures rose over 1.8% to $105.8 per barrel, after declining 3.2% on Tuesday. Meanwhile, WTI crude advanced nearly 1.7% to $103 per barrel on Wednesday.
Starmer under pressure
The Iran war has disrupted a central part of Starmer’s plan to position 2026 as the year voters begin seeing the benefits of his Labour government, including initiatives like the minimum wage increase and energy bill reductions announced in Chancellor Rachel Reeves’s last budget, according to a report by Bloomberg.
Instead, his cost-of-living campaign has been derailed, with rising oil and gas prices driving up inflation expectations and prompting traders to anticipate three interest rate hikes this year, reversing earlier expectations of cuts, the report noted.
Here’s what UK Finance Minister said
Earlier in the day, British finance minister Rachel Reeves told the BBC on Wednesday that any government support to offset the increase in energy costs caused by the conflict in the Middle East would be based on household income, Reuters reported.
Household energy bills are expected to rise in July and Reeves said in March that any support would be targeted.
“We’re looking at ways in which we can support people based on their household income,” Reeves told the BBC, adding that it was too early to say who would get help, Reuters reported.
With no significant new measures from Starmer, the UK’s main opposition, the Conservative Party, has urged the prime minister to increase North Sea drilling to boost energy supplies, while Nigel Farage’s poll-leading Reform UK proposed on Tuesday to eliminate air passenger duty on short-haul flights to help reduce living costs, Bloomberg report noted.
For now, Starmer’s government says it is reviewing potential economic responses, noting that it is too early to fully assess the war’s impact and emphasizing that the existing gas and electricity price cap until July already offers immediate protection for most households, Bloomberg reported.
