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

US War on Iran Was a ‘Mistake’, Says Reeves

Chancellor Rachel Reeves has expressed concern over the U.S. decision to abandon diplomatic efforts and initiate military action against Iran, calling it an error. During a speech at the IMF’s annual conference in Washington DC, Reeves highlighted the importance of reducing tensions, stating that de-escalation is crucial for global economic stability. She noted that the UK would not support the U.S. military blockade of the Strait of Hormuz, a vital waterway for oil and gas trade.

Conflict’s Economic Impact

Reeves argued that the ongoing conflict has caused significant economic strain, both for the UK and internationally. Energy prices have risen sharply since the hostilities began over six weeks ago, disrupting shipping through the key Strait of Hormuz. She questioned whether the war had improved global security, emphasizing that the UK, as a major gas importer, would face long-term economic challenges if the situation continued.

“Friends are allowed to disagree,” Reeves said when asked about the growing rift between the UK and the U.S. over the conflict. Despite her criticism, she maintained that the relationship between the two nations remains strong. “We are ready to play our part,” she added, referring to upcoming discussions with UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron to ease navigation through the Strait of Hormuz under a “proper ceasefire.”

The International Monetary Fund (IMF) warned that the U.S.-Israel conflict with Iran could trigger a global economic downturn, with the UK expected to suffer the most among developed nations. The IMF recently revised its UK growth forecast to 0.8%, down from 1.3% in January. Reeves acknowledged the conflict’s impact on the UK economy but remained confident in its resilience, stating, “We beat the forecasts for the UK economy last year. I’m confident we’ll beat them again.”

Reeves criticized the U.S. for launching the war without a clear strategy, expressing frustration over the lack of defined goals. “The US went into this war without a clear exit plan,” she said to the Mirror, stressing the economic toll on families and businesses. Meanwhile, U.S. Treasury Secretary Scott Bessent defended the conflict, claiming that short-term economic pain is justified for long-term security. He argued that U.S. and Israeli actions had eliminated the “tail risk” of Iranian nuclear strikes on Europe.

The UK government has stated there is “no assessment” that Iran is targeting Europe with missiles. Reeves, however, remains skeptical about the conflict’s overall benefit, noting that the Strait of Hormuz was previously open and unobstructed. Her remarks underscore the UK’s cautious stance on the war, balancing criticism with a commitment to working with allies to resolve the crisis.

Additional reporting by Jemma Crew