Starmer convenes COBR as Trump issues ultimatum – Daily Business

Missile strikes have continued throughout the region

Sir Keir Starmer will chair a meeting of the Cabinet’s emergency committee COBR today to discuss the impact of the Iran crisis on the UK economy.

The Prime Minister will be joined by the Chancellor Rachel Reeves, the Foreign Secretary Yvette Cooper and the Energy Secretary Ed Miliband, along with Andrew Bailey, the Governor of the Bank of England.

They will consider energy security, the resilience of industry and the supply chain and how the growing conflict is affecting families and the wider business community.

The UK government is under pressure to taken further action to protect vulnerable households and businesses, on top of £53 million of support for heating oil customers, and a warning to petrol retailers not to exploit high energy prices.

The meeting comes after US President Donald Trump issued Tehran with a 48-hour ultimatum to fully reopen the crucial Strait of Hormuz as missiles and drones continue to obstruct global oil supplies in the area. Mr Trump has warned that he will obliterate Iran’s power plants.

Abbas Araghchi, Iran’s foreign minister, has insisted that the Strait of Hormuz is not closed, ships are only hesitating because “insurers fear the war of choice” initiated by the US.

He continued in a statement on X: “No insurer — and no Iranian — will be swayed by more threats. Try respect. Freedom of navigation cannot exist without freedom of trade. Respect both — or expect neither.”

Kaja Kallas, the European Union’s foreign policy chief, has spoken of the urgent need to reopen the Strait of Hormuz, according to an EU official.

“These engagements were part of the EU’s ongoing efforts to explore diplomatic avenues forward,” the official said, adding that “fresh threats to attack critical civilian infrastructure risk impacting millions of people across the Middle East and beyond”.

Meanwhile, Iran is targeting those financing the US military machine. Mohammad Bagher Ghalibaf, the speaker of Iran’s parliament, has warned that any entities that buy US Treasury bonds are “legitimate targets.”

He said: “Alongside military bases, those financial entities that finance the US military budget are legitimate targets. US treasury bonds are soaked in Iranians’ blood. Purchase them, and you purchase a strike on your HQ and assets.

“We monitor your portfolios. This is your final notice.”

Another turbulent week is expected to on the markets. Energy prices rose for the fourth consecutive week, driving borrowing costs higher worldwide and reigniting inflation fears – concerns specifically flagged by the Bank of England and the European Central Bank.

The crisis has forced a revision of immediate and longer term economic forecasts, with inflation certain to rise.

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