US war on Iran was a ‘mistake’, says Reeves

US War on Iran Labeled a ‘Mistake’ by UK Chancellor

UK Chancellor Rachel Reeves has called the US’s decision to terminate diplomatic talks and launch a military campaign against Iran a “mistake,” expressing broad disapproval of the ongoing conflict. During her address at the CNBC Invest in America forum in Washington, Reeves emphasized that de-escalation is the most effective strategy for economic stability, not only for the UK but for the global economy as well.

“The best economic policy now, not just for the UK, but globally, is to de-escalate,” Reeves stated.

The UK government has declared it will not support the US’s military blockade of the critical Strait of Hormuz, aiming to apply more pressure on Iran. When asked about the widening gap between the UK and the US over the conflict, Reeves asserted that the “special relationship” remains intact, noting that “friends are allowed to disagree.”

This week, the International Monetary Fund (IMF) warned that the US-Israel conflict with Iran could trigger a global economic downturn, with the UK likely to suffer the most among advanced economies. Reeves questioned whether the war had improved international security, highlighting its immediate and lasting economic consequences, particularly the damage to Middle Eastern energy infrastructure.

Since the conflict began over six weeks ago, energy prices have surged, disrupting the vital shipping route through the Strait of Hormuz. Reeves, speaking at the IMF’s annual conference in Washington, acknowledged the US’s stance against the Iranian regime but argued that the lack of clear goals in the conflict has led to confusion. She cited the absence of a definitive plan for achieving regime change or halting Iran’s nuclear program as a key issue.

The US has recently highlighted the reopening of the Hormuz passage as a priority, aiming to restore oil and gas exports. Reeves pointed out that the strait was already open before the conflict escalated, suggesting the effort to secure it may have been unnecessary. She noted that UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron will convene discussions on Friday to explore ways of easing navigation through the strait in case of a “proper ceasefire.”

Despite her strong criticism, Reeves affirmed that the UK and US maintain a robust relationship. She referenced the upcoming visit of the King as evidence of this. Meanwhile, the IMF revised its UK growth projection for the year to 0.8%, down from a prior forecast of 1.3%. Reeves acknowledged the conflict’s impact on the UK’s economy, which relies heavily on gas imports, but expressed confidence in exceeding the revised growth expectations.

Reeves also voiced frustration with the US’s lack of a clear strategy, as stated in an interview with the Mirror. She criticized the decision to enter the war without defining its objectives or outlining an exit plan. US Treasury Secretary Scott Bessent defended the move, arguing that the economic strain is a small price for securing long-term international safety. He claimed that US and Israeli actions have mitigated the “tail risk” of Iranian nuclear strikes against Europe and Western nations.

The UK government has stated there is “no assessment” that Iran is targeting Europe with missiles. Reeves reiterated the need for a resolution to prevent further economic harm, particularly to UK households and businesses.