05 May 2026 , 17:28
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Chancellor Rachel Reeves engaged in a debate with Donald Trump’s Treasury Secretary, Scott Bessent, regarding the US’s actions against Iran, as reported.
While in Washington DC for meetings at the International Monetary Fund last month, Reeves expressed her displeasure with the Trump official over “how he had spoken to her.”
The two debated the Iran conflict, with Bessent asserting to his British counterpart that the US had made the world safer by collaborating with Israel to launch attacks on Iran.
According to a report in the Financial Times, Reeves told Bessent that the Iran war lacked clear objectives, which might have been a more definite stance than Sir Keir Starmer’s warning against supporting “regime change from the skies.”
The UK government’s current position is that promoting de-escalation in the Middle East conflict is the “best economic policy” to safeguard UK growth and manage inflation.
These diplomatic efforts appear to have been unsuccessful as the US and Iran resumed hostilities across the Strait of Hormuz, disrupting a ceasefire agreement that had positively impacted markets.
On Tuesday, the Brent crude oil price was approximately $112 per barrel, over 50 percent higher than the level seen in February before the conflict began.
Economists at the Bank of England indicated that in a worst-case scenario of a prolonged conflict, inflation could exceed six percent while interest rates might have to rise to 5.25 percent, leaving the UK economy more vulnerable to a recession.
Reeves is ‘very frustrated’
Reeves has been one of the most vocal critics of President Trump’s war. She publicly stated she was “very frustrated and angry” that the US engaged in warfare “without a clear idea of what they were trying to achieve.”
Labour strategists are also eager to gain favor with voters ahead of crucial local elections, with polling suggesting that the government’s stance on the war has been generally more popular compared to approaches taken by Reform UK and the Conservatives.
The Financial Times reported that both she and Bessent had conversations again since their disagreement.
However, the conflict in Washington DC underscores the deteriorating relations between the US and the UK, endangering extensive security arrangements and deep economic ties.
Analysts have warned that the UK is facing greater economic risks from the war than other advanced economies.
Both the IMF and OECD have downgraded UK growth forecasts more than any other G7 nation due to the conflict.
Researchers at Allianz and Goldman Sachs indicated that the UK is more susceptible to jet fuel shortages than other European countries, which would adversely affect the crucial aviation and tourism sectors.
Deputy Editor