US-Iran war: Rachel Reeves slams Donald Trump’s ‘folly’ as threat of recession looms

Labor’s Rachel Reeves has criticized US President Donald Trump’s “stupidity” for going to war with Iran without a clear exit strategy.

This comes as Britain’s economic growth forecasts have been significantly lowered in the wake of hostilities.

The chancellor said he was “very frustrated and angry” about America’s actions in the Middle East.

His comments dovetail with a dire warning from the International Monetary Fund (IMF) on Tuesday, which suggested a global recession could be a “close call” in a severe conflict-related scenario.

In its first forecasts since the global economy was rocked by conflicts between US-Israeli and Iranian forces, the influential economic body predicted Britain’s economic growth would be weaker than previously expected.

To talk Mirror Ms Reeves said before heading to the IMF spring meetings in Washington DC: “This is a war we did not start.

“It was a war we didn’t want.

“I feel very frustrated and angry that the United States entered this war without a clear exit plan, without a clear idea of ​​what it was trying to achieve.”

At the Washington DC meeting, Ms Reeves is expected to call for coordinated action to combat the global economic shock caused by the war.

The Chancellor also said: “Obviously no sensible person is a supporter of the Iranian regime, but to start a conflict without being clear about what the objectives are and how you come out of it, I think it’s a folly, and that affects families in the UK, but also families in the US and around the world.”

Prime Minister Sir Keir Starmer, along with French President Emmanuel Macron, will host a meeting of world leaders in Paris on Friday.

Here, leaders will aim to make a plan to ensure that the Strait of Hormuz remains open to shipping after the Middle East war ends.

A spokesman for No 10 said: “The summit will advance work towards a co-ordinated, independent, multinational plan to protect international shipping once the conflict is over.”

Sir Keir told MPs on Monday that the British-French initiative would include diplomatic efforts as well as “military planning to reassure shipping”.

Mr Macron has previously said that countries participating in the initiative would work on a “purely defensive mission, separate from the warring parties to the conflict”, which was “intended to be deployed as soon as conditions permit”.

He said the summit would bring together countries “ready to contribute together with us” to the “peaceful multinational mission”.

A new Cabinet committee has been established at Westminster to deal with the implications of the Iran conflict.

The Middle East Response Committee was holding its first meeting on Tuesday to assess the situation in the Strait of Hormuz, a vital shipping route for global oil and gas supplies.

The prime minister set up a committee to address the domestic and international effects of the war, which has driven up energy prices, sparked stock market turmoil and exposed deep divisions between the United States and its traditional European allies.

Insiders likened the new panel to committees chaired by Conservative prime ministers to deal with Brexit preparations and the Covid-19 pandemic.

A source said the “new central body” would focus on “medium-term scenario planning to respond to developments in the region over the coming weeks and months”.

In addition to the ministerial committee, whose full membership has not yet been announced, senior officials will meet under the chairmanship of Cabinet Secretary Dame Antonia Romeo.

The new structure is seen as an acknowledgment that the situation will continue to affect the UK for some time, although meetings of the emergency Cobra committee will still be held to respond to urgent crises.

The initial meeting’s focus on the Strait of Hormuz comes after Donald Trump announced he would impose a blockade of Iranian ports and as Britain and France prepare to host a summit to consider options for securing the shipping route once hostilities end.

Oil prices fell below US$100 a barrel on Tuesday morning on hopes that US-Iran talks could be revived and an agreement could be reached on the key Strait of Hormuz shipping route.

Mr. Trump defended his actions in the Gulf by saying: “We cannot allow one country to extort or extort the world because that is what they do.”

Iran has selectively closed the strait since the start of the US-Israeli bombing campaign.

Some tankers could only pass with the permission of the Iranians.

Mr. Trump’s blockade aims to deprive Iran of revenue from these ships.