Rachel Reeves says she is angry at US president Donald Trump after he launched a war in the Middle East with “no clear plan” as to how to end it.
The chancellor told BBC Radio 2's Jeremy Vine: “I'm angry that Donald Trump has chosen to go to war in the Middle East – a war that there's not a clear plan of how to get out of.”
Earlier, prime minister Sir Keir Starmer also hit out at the US president as he vowed not to bow to pressure to join America’s war against Iran.
In Downing Street this morning, as fears of a fresh UK cost-of-living crisis intensified, Sir Keir also warned: “It is now clear that the impact of this war will affect the future of our country... I do have to level with people. This will not be easy.”
Mr Trump earlier said he was considering pulling out of Nato after allies did not join his war.
The US president also told The Daily Telegraph the UK did not have a navy and that its aircraft carriers “didn’t work”.
Key Points
- Reeves 'angry' at Trump for choosing to go to war in Middle East
- Starmer vows to act in British national interest despite pressure from Trump
- PM warns Britons: 'This will not be easy'
- Trump says he's considering pulling out of Nato after allies didn't join Iran war
- Trump takes aim at UK again in latest tirade over Iran war
- Cabinet minister calls Trump 'unconventional president' who uses 'rhetoric to destabilise'
Watch: Starmer pledges closer ties with Europe after Trump threatens to leave Nato
13:30 , Tara CobhamDiesel prices up almost 30% since Middle East conflict began, RAC says
13:15 , Tara CobhamThe RAC said the average price of a litre of diesel at UK forecourts on Wednesday is 184.2p.
That is up 29 per cent from 142.4p when the conflict in the Middle East began on February 28.
The average cost of petrol on Wednesday is 153.7p per litre.
That is a 16 per cent increase from 132.8p when the war started.
More than a million households face higher mortgages due to Iran war, warns Bank of England
13:00 , Tara CobhamAround 1.3 million more UK households are facing a jump in their mortgage costs following the economic “shock” caused by the conflict in the Middle East, the Bank of England has warned.
The Bank’s latest financial stability report (FSR) said the UK economic outlook has “deteriorated”, increasing pressure on UK households and businesses.
It came as Sir Keir Starmer warned the coming weeks “will not be easy”, adding that "how we emerge from this crisis will define us for a generation".
Political correspondent Millie Cooke reports:
Bank of England warns 1.3m households face higher mortgages due to Iran war
Reeves 'angry' at Trump for choosing to go to war in Middle East
12:54 , Tara CobhamChancellor Rachel Reeves has said she is “angry” at US president Donald Trump for choosing to go to war in the Middle East.
She told BBC Radio 2's Jeremy Vine: “I'm angry that Donald Trump has chosen to go to war in the Middle East – a war that there's not a clear plan of how to get out of.”
Chancellor Rachel Reeves tells BBC Radio 2's Jeremy Vine: "I'm angry that Donald Trump has chosen to go to war in the Middle East — a war that there's not a clear plan of how to get out of."
— Dan Bloom (@danbloom1) April 1, 2026
Reeves dismisses reports of a £20m per day Treasury 'windfall'
12:45 , Tara CobhamRachel Reeves has dismissed reports that the Treasury is receiving a windfall of an extra £20m per day as a result of taxes linked to the price of oil and gas, saying it is "for the birds".
Asked about the analysis, reported by the Times, the chancellor told BBC Radio 2: "Let's be clear, since Trump started this war, which we disagree with, the costs of borrowing for government have gone through the roof.
"The revenues that we're likely to get through on income tax and capital gains tax are likely to come down because the economy is likely to be weak. The idea that there's any windfall coming to the Treasury is just for the birds."
She added: "I think that people can see that what Trump has done in the Middle East is going to cause economic challenges all around the world, with potentially higher inflation, weaker growth and weaker tax receipts.
"So you may get a bit more from fuel duty in the short run, but you actually are going to get less from other taxes as businesses put off decisions to invest or to hire as people worry about spending money in the shops, because they're concerned about their bills."
Clean energy is 'the only way to get off rollercoaster of oil and gas prices', Reeves says
12:33 , Tara CobhamPolitical correspondent Millie Cooke reports:
Rachel Reeves has defended the government's approach to energy, saying the only way to "get ourselves off this rollercoaster of oil and gas prices" is long term investment in home grown clean energy.
Pressed on why the government isn't doing more to support drilling for North Sea oil, she told BBC Radio 2: "If we're going to get ourselves off of this rollercoaster of gas and oil prices, of course we want to move to something what we have control over.
"And even if we drilled every bit of oil and gas out of the North Sea, we wouldn't be able to set the price of it.
"And it's the price that's going up at the moment, it wouldn't affect the price of the pumps. but it would of course create jobs and tax revenue and that is why exactly we'd continue to support, oil and gas for decades okay to come."
‘Two dead and one missing’ in Channel hours after new beach patrol deal fails
12:30 , Tara CobhamTwo people have reportedly died and a search and rescue operation is under way off a French beach after migrants set out to cross the English Channel hours after the home secretary failed to agree a new beach patrol deal.
An emergency helicopter could be seen searching the area, and French maritime authorities were seen hauling people out of the water.
French newspaper La Voix Du Nord reported that two migrants have died and one is missing.
The two people were pulled from the water but pronounced dead a few minutes later, the newspaper said. Medics treated another person for hypothermia before they were taken to hospital in Dunkirk.
Some 50 migrants, including children, were seen struggling to board a small boat off the coast of Gravelines, France, during an attempted crossing on Wednesday morning, while at least 12 French police officers were present in the beach area.
Shabana Mahmood signed a last-minute two-month extension to the current arrangement on Tuesday, just before the near £500 million deal aimed at reducing the number of departures was due to end at midnight.
Operational contracts will continue to be funded by £16.2 million as the UK and France thrash out a longer-term agreement.
Watch: 'How we emerge from this crisis will define us for a generation', Starmer says
12:10 , Tara CobhamPM 'entirely right' to seek closer ties with European allies, Best of Britain chief says
12:00 , Tara CobhamCommenting on the prime minister’s confirmation that a new summit with the EU is expected to be announced “in the coming weeks”, Naomi Smith, chief executive of Best for Britain, which campaigns for closer UK-EU ties, said: "With Trump’s devastating Iran War set to send our energy bills soaring, while tyrants the world over observe the unfolding chaos with glee, the prime minister is entirely right to seek far closer co-operation with our European allies and friends, on whom our joint economic resilience depends, and confirmation of a second UK-EU summit is welcome.
“But ministers should - and must - go even further and faster on rebuilding those crucial ties, as independent economic research shows that the economic growth the British people need is only sparked by deeper alignment across all industrial and service sectors.”
Watch: Starmer hits out at Trump as he says he won't bow to US 'pressure' to join Iran war
11:50 , Tara Cobham'Government must pull out all the stops to protect UK from sustained Trump-slump'
11:40 , Tara CobhamThe Trades Union Congress is calling on the government to “pull out all the stops to protect the country from a sustained Trump-slump”.
Commenting on the prime minister’s speech this morning, TUC general secretary Paul Nowak said: “The longer this war goes on, the bigger the threat to our economy and to living standards from Trumpflation.
“That’s why deescalation must be the priority. But the government must stand ready to pull out all the stops to protect the country from a sustained Trump-slump – and ensure those with the deepest pockets shoulder the cost.
“Low-income families and already-struggling sectors will need the greatest protection most quickly.
“And the right government is right to seek a closer trading relationship with the EU – especially with the US showing itself to be an unreliable global partner.”
Watch: Starmer warns cost of living spike from Trump’s Iran war ‘won’t be easy’ for Britons
11:30 , Tara CobhamAnalysis: Starmer hugs Europe closer as Trump’s Iran war hits living costs in UK
11:20 , Tara CobhamWhitehall editor Kate Devlin writes:
In the end, unlike other world leaders, Keir Starmer announced nothing new on living costs today.
The Prime Minister will be hoping that the Iran war comes to an end soon before the government is forced to take emergency measures to help solve an economic crisis at home.
To be fair there are signs from across the Atlantic that Trump does not want this conflict to go on for much longer.
But there were also signs from the Prime Minister about what the UK will do at the end of this war - hug Europe closer.
The UK will host a summit with the EU on closer relations later this year and the Labour leader said he wanted it to be ambitious on both security and the economy.
The special relationship with the US is not dead, but the Prime Minister has indicated it will be changed by this war.
Starmer signals government seeking stronger ties with EU
11:10 , Tara CobhamSir Keir Starmer has insisted Labour’s manifesto red lines on closer relations with Europe remain, even as he signalled the government will seek stronger ties with the EU in light of the Iran war’s global impact.
Asked by reporters if Labour’s commitments at the general election to not seek a customs union, re-join the single market, or establish freedom of movement are still in place, the Prime Minister said: “The manifesto commitments remain, but we made it clear in the manifesto that we wanted a closer relationship with Europe, so that is perfectly consistent with our manifesto.”
Challenged whether he was now choosing Europe over the US after previously claiming he was seeking good relations with both, Sir Keir replied: “I’m not going to choose because I think it is in our interest to have a strong relationship with the US and with Europe. But I do think that when it comes to defence and security, energy emissions, and the economy, we need a stronger relationship with Europe.
“I actually think that will help strengthen our relationship with the US, because successive presidents have said that Europe needs to do more on their defence and security.”
Sir Keir had earlier brushed off suggestions he was seeking a single market with the EU, telling reporters: “I do think that we should strengthen our co-operation on defence, security, energy, emissions and the economy. On the economy, the steps we’ve taken so far have been in relation to the single market, and I’m ambitious that we can do more in relation to the single market, because I think that’s hugely in our economic interests.
“Obviously, this is a matter of negotiation and discussion with the EU, but the summit we have this year will not be just be a stock take summit where we look at the ten strands that we put in place last year, it will be a deliberate ambition on our part to go further than that and to co-operate more deeply, including in the economic sphere.”
Starmer insists he won't change his position on UK involvement in Iran war
11:00 , Tara CobhamSir Keir Starmer insisted he would not change his position on Britain’s involvement with the war against Iran.
Asked by reporters how seriously he took the threat from Donald Trump that the US may no longer come to the UK’s aid in future, the Prime Minister replied: “It is very important that we are clear there’s been a good deal of pressure on me to change my position in relation to joining the war, and I’m not going to change my position on the war.
“So whatever the pressure, whatever the noise, I’m the British Prime Minister, and I have to act in our national interests.
“I should say that on defence, and security, and intelligence, we are obviously working closely with the US, as we always do.
“And in relation to the planning on the Strait of Hormuz, of course that involves talking to the Americans as well.
“So as I say, whatever the pressure, whatever the noise, my job is – as British Prime Minister – to concentrate on what’s in the British national interest. That is what’s guided me through this conflict so far. It will continue to guide me as we go forward.”
Starmer rejects idea that Britons should change their behaviour amid fears of shortages
10:50 , Tara CobhamSir Keir Starmer has rejected the idea that the British public should change their behaviour amid warnings of food and fuel shortages as a result of the conflict in the Middle East.
So far, ministers have repeatedly said that people should carry on as normal.
When it was put to him that a number of other countries have asked the public to make behaviour changes, the prime minister said: "We are monitoring it very clear carefully on a daily basis. And our assessment looks at supply, looks at the impact on our economy, and we'll keep the measures we've got in place at the moment."
He added: "I'm absolutely convinced that the most important thing is de-escalation. The most important thing is getting the Strait of Hormuz back fully open. And that's why we're putting a lot of effort into the next stage of that and really pushing forward."
Starmer vows to act in British national interest despite pressure from Trump
10:42 , Tara CobhamSir Keir Starmer has said he will act in the British national interest “whatever the pressure on me and others, whatever the noise”.
Asked about Donald Trump saying saying he is considering pulling the US out of Nato, Sir Keir said: “Firstly, Nato is the single most effective military alliance the world has ever seen, and it has kept us safe for many decades, and we are fully committed to Nato.
“Secondly, that whatever the pressure on me and others, whatever the noise, I’m going to act in the British national interest in all the decisions that I make.
“And that’s why I’ve been absolutely clear that this is not our war and we’re not going to get dragged into it.
“But I’m equally clear that, when it comes to defence and security and our economic future, we have to have closer ties with Europe. That’s why we had the summit last year.
“This year, as I’ve just announced, there’ll be a further summit. There, we will make good on equipment that we put in place last year, but we will also go further in relation to the alignment.”
UK will pursue closer security and economic partnership with EU, Starmer says
10:34 , Tara CobhamBritain will pursue a closer security and economic partnership with the European Union in light of the Iran oil crisis, Sir Keir Starmer said.
Speaking at a No 10 press conference, the Prime Minister said: “We will continue to stand up for the British national interest, and we will continue to do what we must to guide our country calmly through this storm. However, 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 added: “As the Chancellor has rightly pointed out, Brexit did deep damage to our economy, and the opportunities to strengthen our security and cut the cost of living are simply too big to ignore.”
Sir Keir continued: “In the coming weeks, we will announce a new summit with our EU partners, and I can tell you that at that summit, the UK will not just ratify existing commitments made at last year’s summit.
“We want to be more ambitious. Closer economic co-operation, closer security co-operation, a partnership that recognises our shared values, our shared interest and our shared future.
“A partnership for the dangerous world that we must navigate together, a world where this Government will be guided at all times by the interests of the British people.”
Trump says he's considering pulling out of Nato after allies didn't join Iran war
10:26 , Tara CobhamDonald Trump has said he is considering pulling out of Nato after allies did not join his war with Iran.
The US President also claimed the UK does not have a navy and that its aircraft carriers “didn’t work”.
Asked whether he would reconsider the US’s membership of Nato, Mr Trump told The Daily Telegraph: “Oh yes, I would say (it’s) beyond reconsideration.”
He added: “I was never swayed by Nato. I always knew they were a paper tiger, and Putin knows that too, by the way.”
Mr Trump rebuked Prime Minister Sir Keir Starmer for refusing to get involved in the US-Israeli war against Iran, and suggested the Royal Navy was not ready.
He said: “You don’t even have a navy. You’re too old and had aircraft carriers that didn’t work.”
Asked if the Prime Minister should spend more on defence, Mr Trump said: “I’m not going to tell him what to do. He can do whatever he wants. It doesn’t matter. All Starmer wants is costly windmills that are driving your energy prices through the roof.”
'How we emerge from this crisis will define us for a generation', Starmer says
10:23 , Tara Cobham"How we emerge from this crisis will define us for a generation", Sir Keir Starmer has said.
Giving a press conference on the cost of living impacts from the war in Iran, the prime minister said: "I'm not prepared to ask the British people once again to go through a crisis, come out of it and say 'business as usual, back to the status quo'.
"So on our economy, on our energy and on our defence, this time will be different.
"We will make Britain a fairer and more secure country, because that hope is what is needed as the country comes together, because how we emerge from this crisis will define us for a generation."
Starmer reiterates that UK 'will not be drawn in' to Iran war
10:22 , Tara CobhamPolitical correspondent Millie Cooke reports:
Sir Keir Starmer has reiterated that the British government will "not be drawn in" to the Iran war, saying officials are using diplomatic channels to push for deescalation.
The PM told a Downing Street press conference: "Let me say once again, this is not our war. We will not be drawn into the conflict that is not in our national interests.
"The most effective way we can support the cost of living in Britain is to push for de-escalation in the Middle East and a reopening of the Strait of Hormuz, which is such a vital route for energy."
He continued: "To that end, we're exploring each and every diplomatic avenue that is available to us.
"The foreign secretary and the chancellor have met their counterparts in the G7. The defense secretary has been in the Middle East, speaking to our partners, and the UK has now brought together 35 nations around our statement of intent to push as one for maritime security across the Gulf.
"And today, I can announce that later this week, the foreign secretary will host a meeting that brings those nations together for the first time, where we will assess all viable diplomatic and political measures that we can take to restore freedom of navigation".
Foreign secretary to host meeting of international leaders over reopening Strait of Hormuz
10:21 , Tara CobhamForeign secretary Yvette Cooper will host a meeting of international leaders to “assess all viable diplomatic and political measures” to reopen the Strait of Hormuz, Sir Keir Starmer has announced.
The prime minister said: “The foreign secretary and the chancellor have met their counterparts in the G7, the defence secretary has been in the Middle East speaking to our partners. And the UK has now brought together 35 nations around our statement of intent to push as one for maritime security across the globe.
“Today, I can announce that later this week, the foreign secretary will host a meeting that brings those nations together for the first time, where we will assess all viable diplomatic and political measures that we can take to restore freedom of navigation, guarantee the safety of trapped ships and seafarers and resume the movement of vital commodities.”
PM warns impact of Iran war 'will affect future of UK'
10:19 , Tara CobhamSir Keir Starmer has warned that the impact of the Iran war “will affect the future of our country”.
The prime minister said in an update today: “It is now clear that the impact of this war will affect the future of our country.
“So today, I want to reassure the British people that no matter how fierce this storm, we are well placed to weather it, and that we have a long term plan to emerge from it a stronger a more secure nation.”
Starmer warns Britons: 'This will not be easy'
10:17 , Tara CobhamSir Keir Starmer has warned Britons “this will not be easy” as he speaks on the impact of the Middle East conflict on the UK.
The prime minister told reporters today: “I do have to level with people. This will not be easy.”
'No matter how fierce this storm, we are well placed to weather it', PM says
10:15 , Tara CobhamSir Keir Starmer has opened his press conference by offering reassuring words to the British public, insisting that "no matter how fierce this storm, we are well placed to weather it."
He said he wants to reassure voters that the government has a "long term plan" to emerge from the conflict a "stronger more secure nation".
He added: "Let me say once again, this is not our war. We will not be drawn into the conflict that is not in our national interests."
Sir Keir Starmer begins to give press conference
10:14 , Tara CobhamSir Keir Starmer has begun speaking at his Downing Street press conference.
Members of media gather at Downing Street as Starmer to speak shortly
10:10 , Tara CobhamMembers of the media have gathered at Downing Street for the press conference that Sir Keir Starmer is set to deliver shortly.
Business secretary insists no supply chain issues for jet fuel 'at this moment'
10:09 , Tara CobhamThere are no supply chain issues for jet fuel “at this moment”, the business secretary said.
Speaking on Times Radio, Peter Kyle said: “I was looking immediately after the conflict started, where we interact in order to get resilience into our society, into our economy, we’ve been working with all these key sectors, identifying sectors where there may well be challenges down the track.
“We have no (fuel) supply chain issues at this moment at all.
“So people need to just realise that our country is well supplied when it comes to critical infrastructure and fuel.”
Asked about the supply of medicines following NHS England chief executive Sir Jim Mackey saying he was “really worried” about the issue on Tuesday, Mr Kyle added: “What the NHS boss said this week was that he was worried about live medicines, one very specific medicine type in the NHS.
“He has raised that concern, and we will look at that concern. But he is not talking about all medicine and all parts of the NHS.”
Food prices to soar by almost 10% due to Iran war, as fuel and energy bills bite
10:08 , Tara CobhamFood bills are set to soar as much as 10 per cent this year as a direct consequence of the Iran war, a key industry body has warned.
The Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, has hiked its inflation forecast for the year from 3.2 per cent to between and 10 per cent.
During the 2022 cost of living crisis, food inflation rose at a rate of 10.9 per cent, figures from the Food and Drink Federation (FDF) show, while the following year was even worse at 14.6 per cent.
Business and money editor Karl Matchett reports:
Food prices to rise by almost 10% due to Iran war, warns key industry body
Watch live: Starmer addresses UK as Iran conflict threatens cost of living crisis
10:05 , Tara CobhamUK manufacturing sector sees biggest monthly jump in input prices for over 30 years, survey shows
10:03 , Tara CobhamBritain’s manufacturing sector has seen the biggest monthly jump in input prices for over 30 years as the Iran war wreaks havoc on supply chains, according to a survey.
The S&P Global UK manufacturing purchasing managers’ index (PMI) survey, watched closely by economists, showed that the input price inflation index jumped by 15 points between February and March – the biggest rise since the UK withdrew from the European Exchange Mechanism (ERM) on so-called Black Wednesday in 1992.
The report also showed that delivery delays worsened due to the Middle East conflict as ships have been forced to re-route around the blocked Strait of Hormuz, which is a key shipping route.
Manufacturing production also contracted for the first time in six months in March, according to the survey.
Overall activity slipped back, with the PMI recording a reading of 51 in March, down from 51.7 in February and lower than the 51.4 flash estimate earlier this month.
No major policy announcement expected at Starmer press conference
10:00 , Tara CobhamWhitehall editor Kate Devlin reports:
The Australian Prime Minister Anthony Albanese has just asked those who can to switch to public transport over the coming months.
But Keir Starmer is not expected to make any major new announcements in his press conference after 10am.
Instead the Prime Minister will talk about a series of measures designed to help the cost of living, including an increase to the minimum wage, that were announced before the Iran war began.
Starmer to hold press conference in minutes – what is PM set to say?
09:50 , Tara CobhamSir Keir Starmer is due to speak at a press conference at Downing Street at 10am today.
The prime minister is expected to provide an update on the cost of living in the UK amid concerns over the amount energy bills could rise as a result of the Middle East conflict.
It is thought the press conference will cover both the conflict and government support for households as rising prices bite.
Sir Keir previously vowed to “protect the British people at home and abroad”.
Meanwhile, chancellor Rachel Reeves has told BBC Breakfast that any support the government offers would be based on household income, but refused to commit to immediate support for drivers.
Sir Keir has faced calls to ease the cost of living from Conservative shadow chancellor Sir Mel Stride, who said his party “will get Britain drilling in the North Sea, cut bills by £200, lower taxes, and deliver a stronger economy and a stronger country”.
To mark the start of April, Sir Keir said: “In an uncertain and volatile world, it is my government’s duty to protect the British people at home and abroad. I know the public are concerned about the conflict in Iran and what it means for them and their families. I want to reassure them that they have a government on their side, working with allies on de-escalation and bearing down on the cost of living.
“Today, millions of people up and down the country will see energy bills go down by £117, wages go up for the lowest paid, and more support will be available for people who need it most – because of the decisions this government has taken.
“But we must go further to bear down on costs, and that means pushing for de-escalation in the Middle East and a re-opening of the Strait of Hormuz. That is the best way we can bring down the cost of living for families and that is my focus.”
First sea lord admits Royal Navy is not ready for war
09:44 , Tara CobhamThe Royal Navy is not yet ready for war, the first sea lord has admitted.
General Sir Gwyn Jenkins has said that the Royal Navy has “work to do” to be ready for war, amid criticism from the United States for not sending ships in support of its war in Iran.
Speaking to Swedish newspaper Svenska Dagbladet on Monday, he said: “According to the defence investigation that was completed last year, I will be ready for war by the end of this decade.”
Bryony Gooch reports:
70% of Britons believe fuel shortages likely in coming weeks, new poll shows
09:30 , Tara CobhamAlmost three-quarters of Britons believe it is likely that there will be shortages of fuel at petrol stations in the coming weeks, according to a new poll.
The YouGov survey found that 23 per cent see this as a very likely possibility, while only 18 per cent feel fuel shortages are unlikely.
The war in Iran has resulted in the effective closure of the Strait of Hormuz, through which around 20 per cent of the world's oil and natural gas flows, pushing up prices at the pumps.
70% of Britons believe it's likely there will be a shortage of fuel at petrol stations in the coming weeks, as the RAC announces that the cost of filling the average family diesel car has broken the £100 mark
— YouGov (@YouGov) March 31, 2026
Likely: 70%
Unlikely: 18% pic.twitter.com/pfxk5CGHHK
Cost of living support will be based on household income, Reeves says
09:12 , Tara CobhamPolitical correspondent Millie Cooke reports:
Any cost of living support offered by the government will be based on household income, the chancellor has said, as she refused to commit to immediate support for drivers amid rising fuel costs.
Rachel Reeves told BBC Breakfast: “I want to learn the lessons of the past because when Russia invaded Ukraine, the richest, the best-off third of households got more than a third of the support. That makes no sense at all.”
The chancellor – who will meet supermarket bosses and regulators on Wednesday to discuss the impact on consumers – added she had to be “careful” with cuts to fuel duty or VAT on petrol because it risked pushing up inflation.
Analysis: Oil prices drop noticeably – this could all change again
09:12 , Tara CobhamBusiness and money editor Karl Matchett writes:
Oil prices have dropped noticeably today to below the $100 marker, following Donald Trump's latest assertion that the Iran war will be done within 2-3 weeks.
We’ve already had two price drops since this situation started, so don't take anything for granted just yet – and remember that at $99.70, Brent crude still sits around a third (32.4 per cent) higher than before the war started.
Markets have been waiting for that moment all the same and with the FTSE 100 roaring 1.7 per cent higher straight after opening this morning, investors in European and US markets might expect even more today. The Euro Stoxx 50 index is up 2.75 per cent in the first hour of trading.
However, as always, this could all change on the toss of a coin...or on the US president waking up and making more announcements.
Trump is 'very unconventional president' who uses 'rhetoric to destabilise', Peter Kyle says
09:09 , Tara CobhamPolitical correspondent Millie Cooke reports:
Donald Trump is a "very unconventional president" who uses "rhetoric to destabilise", a Cabinet minister has said, amid growing tensions between the US and the UK over the Iran war.
Speaking to Sky News, business secretary Peter Kyle said: "He uses the bully pulpit on social media very effectively. He dominates a lot of debate."
He added: “We do hear a lot of rhetoric from the President on social media. He uses rhetoric to destabilise; he uses rhetoric in order to keep people on their toes. We are very much in touch with the American administration.”
Trump takes aim at UK again in latest tirade over Iran war
09:05 , Tara CobhamDonald Trump alleged the UK was among several countries that “can’t get jet fuel” in his latest tirade ahead of the Easter bank holiday weekend – a claim which industry body Airlines UK has refuted.
The US president said the UK and other countries that did not take part in strikes against Iran should secure the Strait of Hormuz themselves.
Trump wrote on his Truth Social platform: “All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT.
“You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us.”
UK drivers face paying more than £100 at the pump
09:04 , Tara CobhamUK drivers with a 55-litre diesel car face paying more than £100 at the pump for the first time since December 2022.
Since fighting began in Iran, oil prices have soared in response to Tehran’s block on tankers passing through the Strait of Hormuz.
Chancellor refuses to commit to immediate support for drivers
09:03 , Tara CobhamChancellor Rachel Reeves has said that any support the government offers would be based on household income, but refused to commit to immediate support for drivers.
She told BBC Breakfast: “I want to learn the lessons of the past because when Russia invaded Ukraine, the richest, the best-off third of households got more than a third of the support. That makes no sense at all.”
She added she had to be “careful” with cuts to fuel duty or VAT on petrol because it risked pushing up inflation.
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Starmer to give cost of living update as energy bills soar due to Middle East conflict
09:01 , Tara CobhamSir Keir Starmer is expected to provide an update on the cost of living amid concerns over the amount energy bills could rise as a result of the Middle East conflict.
The prime minister is due to speak at a press conference later on Wednesday morning after he vowed to “protect the British people at home and abroad”.
It is thought Sir Keir’s Downing Street press conference will cover both the conflict and Government support for households as rising prices bite.
