US war on Iran was a ‘mistake’, says Reeves
US War on Iran Was a ‘Mistake,’ Says Reeves
UK Chancellor Rachel Reeves has labeled the US decision to abandon diplomatic talks and initiate military action against Iran as a “mistake,” offering broad criticism of the conflict’s economic implications. Speaking at the CNBC Invest in America Forum, she asserted that de-escalation is the most effective economic approach, not only for Britain but for the global community.
“De-escalation remains the optimal economic strategy at this moment,” Reeves stated.
The UK government has clarified its position, indicating it will not support the US’s military efforts to block the Strait of Hormuz, a critical route for oil and gas trade. When questioned about the growing divergence between the UK and US on the issue, Reeves confirmed the “special relationship” remains intact despite differing views.
“Differences between allies are expected, and they don’t diminish our partnership,” she added.
The International Monetary Fund (IMF) recently issued a warning that the US-Israel war with Iran could trigger a global economic recession, with the UK predicted to suffer the most among advanced economies. Reeves questioned whether the conflict has truly enhanced international security, citing both immediate and long-term economic challenges, particularly the disruption of Middle Eastern energy infrastructure.
Energy prices have surged since the conflict began over six weeks ago, reducing traffic through the Strait of Hormuz. During her remarks at the IMF’s annual conference in Washington DC, Reeves acknowledged the US’s strong stance against the Iranian regime but argued for a more strategic approach to achieving change.
She noted that the US’s objectives in the conflict remained unclear, whether aiming for regime change, halting Iran’s nuclear program, or maintaining diplomatic negotiations. Recent US rhetoric has centered on reopening the Strait of Hormuz to facilitate oil exports, a goal Reeves suggested was already achieved.
“If the aim is to clear the strait, it was already open a few weeks ago,” she pointed out.
Reeves also mentioned that UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron will convene on Friday to discuss measures for easing navigation through the Strait of Hormuz under a “proper ceasefire.” While she expressed willingness to assist, she emphasized the lack of prior clarity on the US’s plan.
Despite her sharp critique, Reeves affirmed the resilience of the UK-US relationship, citing the forthcoming royal visit as a testament to their continued collaboration. The IMF has revised its growth projection for the UK this year to 0.8%, down from the earlier 1.3% forecast.
“Our economic growth and inflation rates will improve with a conflict resolution,” she said.
Reeves voiced frustration over the US’s lack of a clear exit strategy, calling the war “a source of anger” due to its economic toll on UK households and businesses. US Treasury Secretary Scott Bessent, meanwhile, defended the action, stating that the security risks posed by Iran justify the economic costs.
“The short-term economic hit is a worthwhile trade for long-term security,” Bessent argued.
He further claimed that US and Israeli actions had eliminated the “tail risk” of Iranian nuclear strikes against Western nations. The UK government, however, has stated there is no evidence Iran is targeting Europe with missiles. Additional reporting by Jemma Crew