US war on Iran was a ‘mistake’, says Reeves

Reeves Criticizes US War on Iran as ‘Mistake’

Chancellor Rachel Reeves has described the US decision to abandon diplomatic talks and launch military action against Iran as a significant error, highlighting broad concerns over the conflict’s economic consequences. During her appearance at the IMF’s annual conference in Washington DC, she emphasized that de-escalation is now the most prudent economic strategy, not only for the UK but for the global community.

UK’s Stance on Strait of Hormuz Blockade

The UK government has stated it will not support the US military blockade of the Strait of Hormuz, a vital waterway for global oil trade. Reeves noted that while the US focused on applying pressure to Iran, the UK remained committed to maintaining stability in the region. When asked if the growing rift between the UK and US had strained their historic partnership, she replied affirmatively, yet insisted that “friends are allowed to disagree.”

“The best economic policy now, not just for the UK, but globally, is to de-escalate,” Reeves stated during the Invest in America forum.

IMF Warns of Global Recession Risk

This week, the International Monetary Fund (IMF) warned that the US-Israeli conflict with Iran could trigger a global economic downturn. The UK, as a major importer of gas, is expected to face the sharpest decline among advanced economies. Reeves argued that the war has not improved global security, stressing that the destruction of oil and gas infrastructure in the Middle East has caused long-term economic strain.

Uncertainty Over US Objectives

Reeves expressed doubt about the clarity of the US’s goals in the conflict. She pointed out that the administration’s focus on reopening the Strait of Hormuz—a key shipping route—seemed contradictory, given it had been functional just weeks prior. While she acknowledged the US’s strong opposition to the Iranian regime, she questioned whether the current approach was the most effective way to achieve lasting change.

“We are ready to play our part. But the Strait of Hormuz was open, there was no tolling, a few weeks ago,” she said.

Plans for Ceasefire Talks

Reeves highlighted that UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron would host discussions on Friday aimed at facilitating safe navigation through the Strait of Hormuz. She also expressed confidence in the UK’s economic resilience, noting that despite the conflict’s challenges, the country had surpassed previous growth projections in 2023.

Economic Impact on UK Families

On Tuesday, Reeves told the Mirror that she was “very frustrated and angry” about the US entering the war without a clear strategy. She cited the economic hardship faced by UK households and businesses as the primary reason for her criticism. US Treasury Secretary Scott Bessent, however, defended the move, arguing that the short-term economic toll was justified to eliminate the “tail risk” of Iranian nuclear strikes on Western nations.

“If that’s the aim, well it was open a few weeks ago,” Reeves remarked.

“A small bit of economic pain is worthwhile for long-term international security,” Bessent told the BBC.

Reeves also noted that the UK’s economic forecast for the year has been revised downward by the IMF, from 1.3% to 0.8%, underscoring the conflict’s impact on national growth. Despite this, she remains optimistic about the UK’s ability to recover, stating: “Our growth will be higher and inflation will be lower if the conflict comes to an end.”