UK cost of living to be 'likely' hit by Iran conflict, Starmer warns

2026-03-09 - 12:12

The prime minister admitted that the escalating Middle East conflict poses a significant threat to the UK economy, warning that the longer hostilities continue, the greater the potential disruption to daily life. "We're looking cross-departmental within the government, assessing the risks, monitoring and talking to our international partners as well about what more we can do together to reduce the likely impact on people here and businesses here of course," Starmer stated. He revealed that the chancellor maintains daily communication with the Bank of England governor to stay ahead of developing economic challenges. Starmer defends UK's limited military role Addressing criticism over his decision to restrict US access to British bases for offensive strikes against Iran, Starmer firmly asserted Britain's sovereign right to determine its military involvement. "Those decisions about what's in Britain's best interests are decisions for the prime minister of Britain," he declared, emphasizing that all choices regarding the conflict are guided by British values and principles. The UK has only permitted defensive operations from its facilities, a position that has drawn attention from Washington. Trump dismisses British naval deployment The prime minister's remarks follow Saturday statements from former President Donald Trump, who explicitly stated he does not want British aircraft carriers deployed to the Middle East. "We don't need people that join wars after we've already won," Trump wrote, suggesting tension between the longtime allies over the timing and nature of military cooperation. Despite the friction, Starmer and Trump spoke Sunday about military coordination, including the use of Royal Air Force bases to support collective self-defense of regional partners, with Starmer also offering condolences for US service member casualties. Social cohesion concerns amid economic pressure Starmer additionally warned against domestic divisions, noting that some elements may attempt to exploit the conflict to "divide communities in this country and tear people apart." He urged unity as the UK braces for economic repercussions. For Türkiye, which maintains balanced relations with both Western allies and regional powers, the evolving UK position offers insights into NATO members' calculations as the conflict threatens to reshape energy markets, trade routes, and regional stability across the Middle East and beyond.