US war on Iran was a 'mistake', says Reeves

UK Chancellor Rachel Reeves voiced strong criticism of the US's military conflict with Iran, stating that ending diplomatic negotiations was a "mistake." Speaking at CNBC's Invest in America forum, Reeves asserted that de-escalation represents the optimal economic policy, not just for the UK but globally. The UK government has confirmed it will not participate in the US military blockade of the Strait of Hormuz, a key shipping route intended to pressure Iran.

Reeves highlighted concerns about the conflict's economic repercussions, noting that energy prices have surged and traffic through the Strait of Hormuz has sharply reduced since hostilities began over six weeks ago. The International Monetary Fund (IMF) has warned that the US-Israel war with Iran could plunge the global economy into recession, with the UK projected to be among the hardest-hit advanced economies. Reeves expressed frustration over the lack of clarity regarding US objectives in the conflict, questioning whether the aim was regime change, ending Iran's nuclear program, or prompting diplomatic talks that were already underway.

Despite her outspoken criticism, Reeves maintained that the US and UK share a "very good relationship," acknowledging that "friends are allowed to disagree." She emphasized the significant impact on the UK, a net importer of gas, stating that the country's growth would be higher and inflation lower if the conflict were to end. US Treasury Secretary Scott Bessent, however, suggested that a "small bit of economic pain" is acceptable for long-term international security.