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

US War on Iran Was a ‘Mistake,’ Says Reeves

Chancellor Criticizes Military Conflict as Economic Misstep

Chancellor Rachel Reeves has accused the United States of misjudging the situation by shifting from diplomatic talks to military action, calling the move a “mistake.” During her appearance at the CNBC Invest in America forum, she stressed that de-escalation remains the most prudent economic path for the UK and the world.

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

UK’s Stance on Hormuz and Regional Tensions

The UK government has confirmed it will not support the U.S. military blockade of the critical Strait of Hormuz, aiming to intensify pressure on Iran. When questioned about the growing rift between the UK and the U.S., Reeves reassured that the “special relationship” remains intact, noting that “friends are allowed to disagree.”

Earlier this week, the International Monetary Fund (IMF) warned that the US-Israel conflict with Iran could trigger a global economic downturn, with the UK projected to suffer the most among developed nations. Reeves expressed doubt about the war’s ability to enhance global security, citing the disruption of Middle Eastern oil and gas infrastructure as a major cause of sustained economic strain.

Strategic Objectives and Uncertainty

Reeves highlighted the lack of clarity surrounding the U.S. goals in the conflict, which she said were unclear whether they aimed for regime change, halting Iran’s nuclear program, or pushing for diplomatic solutions already underway. She pointed out that the Strait of Hormuz was already open six weeks prior, questioning the necessity of escalating hostilities.

“If that’s the aim, well it was open a few weeks ago,” she remarked.

Leadership and Future Talks

Reeves 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 of Hormuz, assuming a “proper ceasefire.” She emphasized the UK’s readiness to contribute, despite the ongoing conflict.

Despite her strong remarks, Reeves affirmed the UK’s positive relationship with the U.S., citing the upcoming royal visit as evidence. Meanwhile, President Trump, in a Sky News interview, questioned the term “special relationship,” suggesting it had “been better, but it’s sad.” He argued that the U.S. had provided a favorable trade deal, which he claimed could be adjusted if needed.

Economic Forecast and Confidence

The IMF recently revised its UK growth projection for this year to 0.8%, down from a prior estimate of 1.3% in January. Reeves acknowledged the conflict’s impact on the UK, which relies heavily on gas imports, but remained confident in the economy’s resilience.

“Our growth will be higher and inflation will be lower if the conflict comes to an end,” she said.

Reeves also voiced frustration over the U.S. entering the war without a clear exit strategy, as revealed in her comments to the Mirror. She attributed the decision to its potential economic repercussions for UK households and businesses. In contrast, U.S. Treasury Secretary Scott Bessent argued that “a small bit of economic pain” was justified for long-term security, emphasizing the removal of “tail risk” from Iranian nuclear threats.