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

Reeves Condemns US’s Iran Conflict as Economic Misstep

Chancellor Rachel Reeves has criticized the U.S. for initiating a military conflict with Iran after halting diplomatic discussions, calling the decision a “strategic error.” During her appearance at CNBC’s Invest in America forum, she argued that de-escalation is essential for economic stability, both in the UK and worldwide.

UK Stands Firm on Strait of Hormuz

The UK government has clarified it will not support the U.S. military blockade of the critical Strait of Hormuz, a key maritime passage. This move aims to exert more pressure on Iran, but Reeves emphasized the need for restraint.

Special Relationship Unaffected by Disagreements

When asked if growing tensions between the UK and U.S. over the conflict have strained their “special relationship,” Reeves replied negatively. “Alliances allow for differing views,” she stated, underscoring her belief in the strength of the partnership despite current disagreements.

The International Monetary Fund (IMF) recently warned that the U.S.-Israel conflict with Iran could trigger a global recession, with the UK facing the most severe economic consequences among advanced nations. Reeves expressed doubt about the conflict’s success in enhancing security, noting its negative toll on oil and gas infrastructure in the Middle East.

Energy costs have surged since the war began over six weeks ago, disrupting shipping through the Strait of Hormuz. Reeves highlighted that while she shares the Trump administration’s hostility toward Iran, the strategy to achieve change remains unclear. She questioned whether the conflict aimed to overthrow the regime, halt its nuclear program, or force diplomacy, which had already commenced before hostilities escalated.

Reeves pointed out that the U.S. has focused on reopening the Strait of Hormuz to facilitate oil exports. “If that’s the goal, it was already open a few weeks ago,” she remarked. She also mentioned that UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron are set to host talks on Friday to discuss easing navigation through the strait under a “proper ceasefire.” The UK is prepared to contribute, she added, but stressed the importance of avoiding unnecessary economic strain.

Despite her sharp critique, Reeves maintained that the UK and U.S. share a “very good relationship.” She referenced the upcoming visit of the King as a sign of continued cooperation. The IMF has revised its UK growth forecast for this year, reducing the estimate from 1.3% to 0.8%, citing the conflict’s impact on the nation’s gas imports.

“Our growth will be higher and inflation lower if the conflict ends,” Reeves said, acknowledging the economic strain but expressing confidence in overcoming it. “We beat the forecasts last year, and I’m certain we’ll do so again.”

Reeves voiced frustration over the U.S. entering the war without a clear exit strategy, as reported by the Mirror. She attributed the conflict to economic pressures on UK households and businesses. Meanwhile, U.S. Treasury Secretary Scott Bessent defended the action, claiming that “some economic hardship” is justified to eliminate the risk of Iranian nuclear attacks on Western countries. He argued that U.S. and Israeli efforts have mitigated this threat.

The UK government has stated there is “no evidence” Iran is targeting Europe with missiles, aligning with Reeves’ stance on the broader economic implications of the conflict.

Additional reporting by Jemma Crew