Reeves to urge allies to co-operate amid economic turmoil from Iran War
Rachel Reeves will urge international counterparts to follow her lead in managing the economic fallout from the Middle East crisis at a critical summit in Washington.
While attending the spring meetings of the International Monetary Fund (IMF), the Chancellor will discuss with allies what steps can be taken to ensure that energy resources pass through the Strait of Hormuz.
He is expected to tell his counterparts they need to prioritize stability and avoid rash decisions that deepen economic pain, as he calls on his partners to follow his plan to keep costs low for households.
He will also promote the UK as a “safe haven” for investors at meetings with leaders from JP Morgan, ARM, IBM and Vanguard, and plans to speak at CNBC’s Invest in America summit.
Ms Reeves said she would announce plans to boost Britain’s competitiveness and support businesses later in the week.
He said: “Families and businesses across the UK are bearing the costs of instability they did not cause. These are not costs I want, but they are costs we must respond to.”
“There must be a line in the sand on how we deal with the Iran conflict, global crisis and instability.
“I will go to America with a clear message: Global leaders must take coordinated economic action and strengthen the path to energy security to protect ourselves in the future.
“My approach to this crisis will be both sensitive to the changing world and sensitive to national interests.”
Gas prices rose sharply during the closure of the Strait of Hormuz, through which 20 percent of the world’s oil is transported, before the US and Israel decided to attack Iran.
The Resolution Foundation thinktank said the war could leave the average UK household £480 worse off in the current financial year.
The Chancellor’s trip comes after US President Donald Trump’s blockade of Iranian ports, which Prime Minister Sir Keir Starmer refused to support, caused oil prices to rise again.
