San Francisco Frontiers - UK PM Starmer says 'monitoring' economic impact of Iran war

"The longer this goes on, the more likely the potential for an impact on our economy, impact into the lives and households of everybody and every business," Starmer said, speaking at a community centre in London.

"Our job is to get ahead of that, to look around the corner, assess the risk, monitor the risks, and work with others in relation to that."

The prime minister tried to reassure the public amid deep concerns over prolonged cost-of-living pressures and high energy bills since Russia's invasion of Ukraine in 2022.

Starmer insisted the government was prepared to handle the economic fallout, with most households protected until summer by a price cap on gas and electricity.

His finance minister Rachel Reeves will join G7 counterparts on Monday for talks between the world's leading industrialised nations as the war in the Middle East entered its 10th day.

They are scheduled to discuss a joint release of strategic oil reserves coordinated by the International Energy Agency (IEA), the Financial Times reported.

Starmer also defended ties between Washington and London, which looked increasingly frayed in the last week with US President Donald Trump criticising the British leader for initially refusing to have any role in the war.

"The discussion with our US counterparts, is happening at all levels, all of the time, every single day. That's the nature of the relationship," said Starmer, who on Sunday held his first phone call with Trump since the war broke out on February 28.

But he insisted that "decisions about what's in Britain's best interests are decisions for the prime minister of Britain."

K.Gray--SFF