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

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

Chancellor Rachel Reeves has called the U.S. decision to end talks and launch a military campaign against Iran a “mistake,” expressing broad disapproval of the conflict. During an interview at the IMF’s annual conference in Washington DC, she emphasized that de-escalation is the optimal economic strategy for the UK and the global community. “The best economic policy now, not just for the UK, but globally, is to de-escalate,” Reeves stated.

The UK government has maintained it will not support the U.S. military blockade of the Strait of Hormuz, a critical waterway for global energy trade. When questioned about the growing rift between the UK and the U.S. over the war, Reeves said the “special relationship” remains intact despite disagreements. “Friends are allowed to disagree,” she added, underscoring the importance of maintaining ties despite policy differences.

“The best economic policy now… is to de-escalate.” — Rachel Reeves

Reeves highlighted the IMF’s warning that the U.S.-Israel conflict with Iran could trigger a global economic downturn, with the UK facing the most severe consequences among developed nations. She argued the war has not improved global safety, pointing to the damage inflicted on oil and gas infrastructure in the Middle East as a key factor in rising energy costs and disrupted shipping routes.

While acknowledging the UK’s strong alignment with the U.S. on Iran, Reeves noted the lack of clarity in the U.S. objective. She questioned whether the war aimed to force regime change, halt Iran’s nuclear ambitions, or merely derail ongoing diplomatic efforts. The U.S. has recently focused on reopening the Strait of Hormuz, but Reeves pointed out that the waterway was already open weeks prior.

Reeves also mentioned upcoming discussions with UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron to address navigation through the Strait of Hormuz during a potential ceasefire. “We are ready to play our part,” she said, while stressing that the UK’s economic performance last year exceeded expectations. “I’m confident we’ll beat the forecasts again,” she added.

Reeves expressed frustration over the U.S. entering the war without a clear strategy. “I’m very frustrated and angry that the US went into this war without a clear exit plan,” she told the Mirror. She attributed the conflict’s economic toll to its impact on UK families and businesses. US Treasury Secretary Scott Bessent, however, defended the measures, stating that “a small bit of economic pain” is justified for long-term security. Bessent argued that U.S. and Israeli actions have mitigated the risk of Iranian nuclear strikes against Western nations.

The UK government has stated there is “no assessment” that Iran seeks to target Europe with missiles. This aligns with Reeves’ broader concerns about the war’s economic fallout, as the IMF revised its UK growth forecast to 0.8% for the year, down from 1.3% earlier. Reeves believes the conflict’s resolution would lead to stronger economic growth and lower inflation for the UK.