Reeves tells Americans Trump’s Iran war is a ‘mistake’ | Rachel Reeves

Rachel Reeves has stepped up her criticism of Donald Trump’s war on Iran, describing it as a “mistake” that is destabilizing the global economy and damaging living standards around the world.

While transatlantic relations are visibly fraying, the British Prime Minister said Trump’s suspension of diplomatic talks with Iran and launch of airstrikes appeared to have left the President in a worse situation than where he started.

“I think it was a mistake to end these.” [talks with Iran] and engage in conflict, because I’m not convinced that we are safer today than we were a few weeks ago,” he said at an event in Washington.

The chancellor’s comments, aimed at the White House on the president’s home turf, added to harsh criticism of him just before he flew on Tuesday, when he expressed disappointment at the “foolishness” of his decision to go to war without a clear exit plan.

Speaking as he prepared to meet global finance ministers at the International Monetary Fund (IMF) spring meetings this week, Reeves said the war had hit living standards in Britain and the US.

Calling for the urgent reopening of the strait of Hormuz to calm global energy prices, she told the CNBC Invest in America conference the lack of clear US targets in negotiations with Iran had worsened the situation.

“We opened the waterway a few weeks ago. So if the goal now is to reopen the Strait of Hormuz? Well, that was clear at the beginning of the conflict,” Reeves added.

Stepping up pressure on the White House from one of America’s staunchest traditional allies, the chancellor said Trump’s lack of clear goals had laid the foundations for a protracted conflict that has failed to make much progress towards ending Iran’s nuclear ambitions.

“They don’t have nuclear weapons today. So what do people think is the best way to prevent that? Through conflict or through diplomacy? And I believe it’s through diplomacy,” he said. “The diplomatic channel was open. Discussions, official discussions were taking place.”

Reeves said he came to IMF meetings to “deliver the fair message” that the conflict in the Middle East was hitting living standards around the world and that tensions needed to be reduced urgently.

“We believe very strongly in our national interest that de-escalation is now a key priority,” he said. “That’s what businesses and families tell me at home, and that’s the message I came to Washington this week to deliver.”

The criticism adds to the increasingly tense atmosphere between Downing Street and the White House. Relations soured over the prime minister’s decision not to engage in offensive action against Iran, following Keir Starmer’s strategy to placate the president, who is credited with securing the first US trade deal to ease Britain’s volatile tariffs.

Trump’s attacks on Starmer have become increasingly personal, and on Wednesday he threatened to tear up the bilateral agreement, warning it could “always be changed”. Room sent Link to a Sun article on the Truth Social platform attacking Starmer for spreading “hot air” about the UK’s defense spending commitments.

The prime minister told MPs on Wednesday that he “will not bow” to Trump’s trade pressure, saying such threats would not affect Trump’s stance on the Iran war.

Despite the fraying of the special relationship, Reeves claimed the UK was in good shape as he prepared for talks with his US counterpart Scott Bessent. The US Treasury secretary suggested on Tuesday that the economic damage caused by the Iran war was “somewhat painful” to be worth the long-term security.

“Friends are allowed to disagree on some things,” Reeves said. “When you are friends, you can speak your truth and convey that fair message,” he said.

The IMF warned on Tuesday that a further escalation of the Iran war could trigger a global recession that would hit Britain harder than other G7 countries.

The Washington-based fund added on Wednesday that global government debt levels risk rising to the highest point since World War II amid the economic crisis.

Calling for an end to the war, IMF managing director Kristalina Georgieva warned that the war would cause a “huge” shock to the world economy, including the United States. The sooner it ends, the better it will be for everyone, he said.

Speaking as the UK government prepares to announce an expansion of energy support for businesses amid a tight squeeze on UK public finances, Reeves said the IMF’s bleak outlook was one of the reasons he had come to Washington to deliver a harsh message to Trump.

“We are net importers of gas, which means we are affected by the conflict in the Middle East, so I, along with 10 other countries, am sending this message loud and clear,” he said.

“If this conflict ends, our growth will be higher and our inflation will be lower, and this will only happen if tensions decrease.”

This came after Reeves and 10 other treasury secretaries issued a joint statement containing thinly veiled criticism of the Trump administration regarding the economic blow of the war.

Calling for the safe passage of energy supplies through the Gulf, finance ministers from countries including Australia, Japan, Spain and Sweden called on countries to respond to the war by working together and without imposing “unnecessary trade restrictions”.

Starmer is set to meet Emmanuel Macron in Paris on Friday to discuss operations to ensure the safe passage of ships through the Strait of Hormuz. Reeves said the UK was “willing to do its bit” to keep oil supplies flowing once a “necessary ceasefire” in the conflict in the Middle East was reached.