Starmer turns to EU as Iran war rattles UK economy

Keir Starmer, the United Kingdom’s Prime Minister, is moving to reset Britain’s relationship with the European Union, arguing that the economic shock from the war in Iran makes closer cooperation with Europe a matter of national interest, according to the BBC.

Speaking at a news conference, the prime minister said his government would use a planned UK-EU summit later this year to deepen ties on trade, energy and security. “It is increasingly clear that as the world continues down this volatile path, our long term national interest requires closer partnership with our allies in Europe and with the European Union,” he said.

The shift comes as tensions grow between London and Washington, with Britain resisting pressure to take a more direct role in the conflict involving Iran.

Starmer warned that the war would have real consequences at home, particularly through rising energy costs, but sought to reassure the public. “No matter how fierce this storm, we are well placed to weather it,” he said, adding that the government had been “ahead of the game” in responding to cost of living pressures.

The government has begun rolling out steps including removing some green levies from energy bills and raising the national living wage. But pressure is building across the political spectrum for more immediate support as global oil prices surge.

Opposition parties are urging ministers to act before energy bills rise again in July, when the price cap is due to be reset. The Conservatives and Reform UK are calling for VAT on household energy bills to be scrapped and a planned fuel duty increase in September to be cancelled. The Liberal Democrats and Green Party of England and Wales have also called for the duty rise to be halted, while the Greens say ministers should “commit billions now” to shield households from rising bills. Meanwhile, Scottish National Party and Plaid Cymru say clearer guarantees of support are needed.

The economic risks are already drawing concern internationally. The Organisation for Economic Co-operation and Development has warned the UK could face the largest hit to growth among major economies as a result of the conflict.

At the centre of the crisis is the Strait of Hormuz, a key artery for global oil shipments that has effectively been blocked by Iran. The disruption has driven up wholesale oil and gas prices, feeding fears of higher household energy bills across Europe.

Starmer said reopening the strait would be a priority. The foreign secretary is set to host representatives from 35 countries, including European and Gulf states, to discuss how to secure the route once fighting subsides. “This will not be easy,” the prime minister said, adding that it was “in the UK’s national interest” for the strait to become “accessible and safe after the fighting has stopped”.

Asked whether he would scrap the planned fuel duty increase, Starmer said the policy remained under review. “A lot will depend on how long the conflict goes on,” he said, and “how quickly the Strait of Hormuz can be reopened”.

Against this backdrop, Starmer made his clearest case yet for rebuilding ties with Europe after Brexit. He said the conflict had sharpened the need for closer alignment, arguing that “the opportunities to strengthen our security and cut the cost of living are simply too big to ignore”.

A UK-EU summit expected this summer will go beyond existing agreements on trade, defence and energy, he said, signalling a more ambitious agenda. While ruling out a return to the EU single market, customs union or freedom of movement, Starmer suggested there was still room to go further. “I do think that we should strengthen our cooperation on defence, security, energy, emissions and the economy,” he said. “I am ambitious that we can do more in relation to the single market, because I think that is hugely in our economic interests.”

The message marks a pragmatic shift in tone from Downing Street. Brexit will not be reversed, but as the prime minister put it, the realities of a more unstable world are forcing Britain to rethink how closely it works with Europe.

Faith Omoboye

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.