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

UK Chancellor Rachel Reeves has described the US war on Iran as a "mistake," urging global de-escalation to mitigate economic fallout. Speaking at CNBC’s Invest in America forum in Washington DC, Reeves emphasized that the conflict has not made the world safer and warned of significant long-term economic damage, particularly due to disruptions in oil and gas supplies through the Strait of Hormuz. The UK government has distanced itself from the US-led military blockade of the strategic waterway, highlighting growing differences between the allies, though Reeves maintained that such disagreements do not undermine the "special relationship" between the two nations. Reeves criticized the cessation of diplomatic efforts with Iran, noting that formal discussions were ongoing before the conflict escalated. She stressed that Iran does not currently possess nuclear weapons and that diplomacy remains the best path to prevent nuclear proliferation. The chancellor expressed concern over the lack of clarity regarding the US’s objectives in the conflict, whether aimed at regime change, halting Iran’s nuclear ambitions, or restarting negotiations. She pointed out that the Strait of Hormuz, a vital shipping route for global energy supplies, was open prior to the conflict, questioning the rationale behind the US’s recent focus on reopening it. The International Monetary Fund has warned that the US-Israel war with Iran could trigger a global recession, with the UK expected to suffer the most among advanced economies. Energy prices have surged since the conflict began over six weeks ago, exacerbating economic pressures worldwide. Reeves indicated that UK Prime Minister Keir Starmer and French President Emmanuel Macron are set to host talks aimed at ensuring safe navigation through the Strait of Hormuz in the event of a ceasefire, signaling a willingness to engage in diplomatic solutions to stabilize the region. Reeves’s remarks highlight the economic and geopolitical risks posed by the conflict, underscoring the need for renewed diplomatic engagement to prevent further escalation and global economic disruption. The UK’s stance reflects a cautious approach that prioritizes dialogue over military confrontation amid rising tensions in the Middle East.