Sir Keir Starmer is considering sending minehunters to the Gulf as he accelerates planning to reopen the Strait of Hormuz and avert economic disaster following the US and Iran agreed a ceasefire.
A No 10 source said the Prime Minister was “stepping up” work on reopening the Strait’s oil and gas shipping route as “that is what will have the biggest impact on people at home”, who have been facing the prospect of price rises and fuel shortages.
Despite welcoming the ceasefire, Starmer faced warnings from a leading think-tank that the UK still faces economic turmoil and that he should come up with a plan that includes advising Britons to ration energy and fuel as supplies continue to be choked.
The Institute for Government (IfG), in a report shared exclusively with The i Paper , said the PM risked looking complacent about the shock to world energy markets and should “offer advice on demand reduction measures that households can take immediately and later in the year”.
“Still a lot of work to do”
Starmer appeared to acknowledge the economic crisis triggered by the Iran war was not yet over, saying there is still “a lot of work to do” to reopen the Strait as he visited Saudi Arabia following the US-Iran ceasefire announcement.
Mothership being prepared in Gibraltar
A UK-led international coalition of more than 30 nations is expected to speed up work on reopening the Strait as a result, with a British contribution of autonomous mine-hunting drones and boats among the options being discussed, The i Paper understands.
The RFA Lyme Bay is currently in Gibraltar undergoing a refit to act as a mothership for this minehunting technology.
The Government and coalition is also working on wider plans to reassure the energy, shipping and insurance industries that it will be safe to pass ships through the Strait.
Starmer said it was still “early days” after the ceasefire announcement overnight on Tuesday, and that there was work to do to ensure it remains permanent.
He added: “On top of that, we have to acknowledge that this war was not our war, but my job is to protect the UK.
“It’s already had an impact on the UK, and it’s very important we get the Strait of Hormuz open. There’s a lot of work to do there.”
RFA Lyme Bay (MARCOS MORENO/AFP via Getty Images)A joint statement by world leaders including Starmer said they would “contribute to ensuring freedom of navigation in the Strait of Hormuz”, in a nod to the work of the coalition.
The statement, signed by the leaders of the UK, France, Italy, Germany, Canada, Denmark, the Netherlands, Spain and the presidents of the European Commission and European Council, welcomed the ceasefire but called for “quick progress” towards a “substantive negotiated settlement”, while also urging Israel to stop striking Lebanon despite the deal to stop hostilities.
A peace settlement would “avert a severe global energy crisis”, protect Iranian civilians and ensure wider Middle Eastern security, the leaders said.
“We support these diplomatic efforts,” the added.
“To this end, we are in close contact with the United States and other partners.
‘Economic turmoil even if ceasefire holds’
The potential for ongoing turmoil was highlighted by the IfG, which said “there will still be economic turmoil even if the eleventh-hour ceasefire agreed on Tuesday night holds”.
As well as urging Starmer to advise the public on reducing demand for fuel and energy, the PM was urged to follow the example of Gordon Brown responding to the 2008 financial crash in creating a Government-wide coordination unit to convince the public it is closely monitoring developments and planning for worst case scenarios.
As in the responses to the financial crisis and Covid pandemic, this would also develop early warning mechanisms with real-time data to ensure ministers can intervene before shortages emerge or supply chains break down, the report said.
In the medium-term, the Government must also ensure it can obtain the data required to target any energy bills support at lower income households and boost energy security, while reviewing its plan to make the UK able to withstand disruption to all supplies of energy.
IfG senior fellow Jill Rutter says: “In its desire to avoid panic, the Government is downplaying the scale of the shock to world energy markets.
“But panic can only be avoided in the longer run if the government plans now for the potential fall out of the conflict and has clear mechanisms for managing them.”.
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