US war on Iran was a ‘mistake’, says Reeves
US War on Iran Was a ‘Mistake,’ Says Reeves
Chancellor Rachel Reeves has expressed that the US’s decision to abandon diplomatic talks and launch a military campaign against Iran was an error. During a speech at the IMF’s annual conference in Washington DC, she emphasized the importance of de-escalating tensions, stating it as the most prudent economic strategy for the UK and the world.
“The best economic policy now, not just for the UK, but globally, is to de-escalate,” Reeves remarked to CNBC’s Invest in America forum.
The UK government has confirmed it will not support the US’s military blockade of the critical Strait of Hormuz, aiming to exert further pressure on Iran. When questioned about the growing rift between the UK and US over the conflict, Reeves dismissed concerns about the “special relationship,” noting that allies can have differing views.
The International Monetary Fund (IMF) recently warned that the US-Israel conflict with Iran could trigger a global economic downturn, with the UK projected to face the most severe effects among advanced economies. Reeves acknowledged that the war has not only caused immediate economic strain but also long-term repercussions, particularly due to damage to oil and gas infrastructure in the Middle East.
Energy costs have risen sharply since the conflict began over six weeks ago, disrupting the Strait of Hormuz shipping route. Reeves noted the lack of clarity surrounding the US’s objectives, whether it was to overthrow the Iranian regime, halt its nuclear program, or revive diplomatic efforts already underway before hostilities escalated.
Despite her strong critique, Reeves maintained that the UK and US share a solid partnership, citing the upcoming royal visit as evidence. The IMF revised its UK growth forecast for the year to 0.8%, down from an earlier 1.3% in January. Reeves highlighted the negative impact on the UK’s economy, which heavily relies on gas imports, but expressed confidence in surpassing the revised projections.
On Tuesday, Reeves told the Mirror she was “very frustrated and angry” about the US’s lack of a defined strategy before initiating the war. She attributed the conflict’s economic toll to its effect on UK households and businesses. US Treasury Secretary Scott Bessent defended the action, arguing that the potential threat from Iran justified “a small bit of economic pain,” emphasizing the removal of risks to global security.
Bessent claimed that US and Israeli operations had eliminated the “tail risk” of Iranian nuclear strikes against Western nations. The UK government, however, stated there was “no assessment” that Iran aimed to target Europe with missiles. Additional reporting by Jemma Crew