Keir Starmer is holding emergency talks on the Middle East war today as he owed to use ‘every lever’ to combat a brutal squeeze on living standards.
The PM will gather senior ministers and the Bank of England governor in Whitehall amid fears of panic at pumps, an inflation timebomb for energy and food bills, and interest rate rises.
But doubts are mounting over whether Rachel Reeves will be able to offer significant help for families, as government borrowing costs rose again this morning to a new post-2008 high.
With no sign of the Iran war ending soon, oil prices are running well over $110 a barrel – 50 per cent higher than before the US-Israeli strikes began.
The blue-chip FTSE 100 has continued its plunge, having lost more than 1,100 since the end of February.
Keir Starmer is holding emergency talks on the Middle East war today as he owed to use ‘every lever’ to combat a brutal squeeze on living standards
Interest rates on 10-year gilts were spiking again this morning as concerns rise
The blue-chip FTSE 100 has continued its plunge, having lost more than 1,100 since the end of February
Markets have been further spooked by Donald Trump setting a deadline of tonight for Iran to reopen the critical Strait of Hormuz to oil tankers, or face the ‘obliteration’ of power plants.
Tehran has responded by threatening to target energy infrastructure of neighbouring states.
Ms Reeves, Foreign Secretary Yvette Cooper and Energy Secretary Ed Miliband are expected to be at the ‘COBRA’ meeting this afternoon, as well as BoE chief Andrew Bailey.
Before the meeting, Sir Keir told broadcasters: ‘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.’
Markets have been further spooked by Donald Trump setting a deadline of tonight for Iran to reopen the critical Strait of Hormuz to oil tankers, or face the ‘obliteration’ of power plants
Yesterday the chief executive of Centrica, which owns British Gas, said global oil supplies are already down 20 per cent because of the conflict and warned price rises were ‘inescapable’.
But the Government is keen to play down the prospect of fuel rationing and discourage people from panic-buying petrol.
Communities Secretary Steve Reed told broadcasters on Sunday there was ‘no need’ to ration fuel and the public should continue to fill up their cars ‘just like they always would’.
