Politics latest: Starmer to chair Cobra meeting over Iran war after Trump call on Middle East crisis

As the Middle East war enters its fourth week, financial markets have fallen sharply and oil prices have extended gains as global focus turns to the need to break Iran’s grip on the key shipping route for energy supplies.

Brent crude rose 1 percent to nearly $114 a barrel after Iran warned it would hit power plants in the Middle East if U.S. President Donald Trump follows through on his threat to bomb power plants in the Islamic Republic.

The FTSE 100 Index fell 1.6 percent immediately after its opening on Monday, falling further from the 10,000 market and rising 161.5 points to 9756.8.

London’s blue-chip share index fell below 10,000 on Friday for the first time since reaching the milestone in early January.

In Europe, Germany’s Dax index fell by 1.8 percent and France’s Cac 40 index fell by 1.4 percent.

This followed heavy declines in Asia overnight as rhetoric from the United States and Iran gave little sign of a resolution to the dispute and Japan’s Nikkei fell more than 3 percent.

Sir Keir Starmer will not be impressed by Donald Trump sharing a comedy skit mocking him, a government minister has insisted.

The US president shared a comedy sketch from the new Saturday Night Live UK show on his Truth Social platform on Sunday.

In the clip, Sir Keir, played by George Fouracres, panics as he tries to dodge a phone call from Mr Trump and asks his aide: “Oh my God, what if Donald yells at me? What do I say, Lammy?”

Asked about the draft on Monday, housing secretary Matthew Pennycook told Sky News that Mr Trump had “shared all sorts of things”.

“But I think the prime minister will say it’s a comedy sketch,” he said. “He would take it in the spirit in which it was intended… If he had time to watch, that is, he would be quite busy preparing for the Cobra meeting this afternoon.”

A government minister has called for “de-escalation” after Donald Trump set a deadline for Tehran to fully reopen the Strait of Hormuz.

The US president has set a 48-hour deadline, ending Monday, demanding Iran open the Strait of Hormuz or face the destruction of its power plants.

Asked whether the government agreed with this approach, Housing Secretary Matthew Pennycook told Sky News: “You are encouraging me to comment on the US strategy for the US government.

“We have been very clear that we, together with our allies France, Germany, Italy and Japan, must urgently put an end to this conflict. We need to reduce the problems. This is in our national interest.”

Political correspondent Athena Stavrou reports:

As the Prime Minister prepares to chair a Cobra meeting this afternoon, a minister has promised that the government will “fight in the British people’s corner”.

Housing minister Matthew Pennycook told Sky News he would not give away what would be said at the meeting, but added: “The Chancellor has said there is every chance this crisis will put upward pressure on inflation and we are very alert to the risks.

“But as I said, we are monitoring this situation. We will fight alongside the British people. We will stand behind them to reduce cost of living issues.”

Global oil supplies have already fallen 20 per cent due to conflict in the Middle East and price rises are “inevitable”, the chief executive of Centrica, which owns British Gas, warned on Sunday.

But the government is determined to downplay the prospect of fuel rationing and dissuade people from panic-buying petrol.

Communities secretary Steve Reed told broadcasters on Sunday there was “no need” to ration fuel and that people should continue filling up their cars “as they always have”.

Sir Keir Starmer had a phone call with Donald Trump on Sunday night to discuss reopening the Strait of Hormuz.

The prime minister and the US president agreed that reopening the strait was “essential” to stabilize the global energy market, where oil prices have soared since Trump began his joint campaign with Israel against Iran.

The 20-minute meeting, described by sources as “constructive”, followed a week in which Mr Trump heavily criticized Sir Keir’s response to the crisis over the president’s request for other countries to send ships to open the strait.

While other countries have so far resisted his request, Britain is thought to be unlikely to send ships due to the high level of risk in the strait and its reluctance to be drawn into a wider war.

But Tehran’s failed attempt to hit the UK-US base in Diego Garcia with ballistic missiles has raised concerns that much of Europe could be within range of Iranian weapons.

While the Strait remains effectively closed to most shipping, the impact on the global energy market and global economy is expected to continue.

Sir Keir Starmer is set to hold an emergency Cobra meeting on Monday after meeting Donald Trump to discuss reopening the Strait of Hormuz.

Sir Keir, who faces concerns about the threat of high inflation and fuel supply disruptions, will convene his senior ministers at a Cobra meeting on Monday afternoon.

Prime Minister Rachel Reeves, Foreign Secretary Yvette Cooper and Energy Minister Ed Miliband, as well as Bank of England Governor Andrew Bailey, are expected to attend the meeting.

The meeting is expected to discuss the economic impact of the crisis, energy security and the resilience of industry and supply chains, as well as the international response.