British prime minister Keir Starmer will chair an emergency cobra meeting this afternoon (ET) to assess the economic fallout from the war in Iran, including threats to energy and water infrastructure and rising household costs. Ministers expected to attend include Chancellor Rachel Reeves, Bank of England governor Andrew Bailey, Foreign Secretary Yvette Cooper and Energy Secretary Ed Miliband. The meeting aims to map immediate support for families and businesses and to consider energy security after a closure of the Strait of Hormuz has driven oil and gas prices higher.
Cobra Meeting focus and who will attend
The Cobra Meeting is billed as an urgent economic review: participants will examine the impact on families and businesses, energy security, and the resilience of industry and supply chains alongside the international response. Starmer is chairing the session with Chancellor Rachel Reeves and Bank of England governor Andrew Bailey present, joined by Foreign Secretary Yvette Cooper and Energy Secretary Ed Miliband. Officials are under pressure to weigh targeted household support rather than broad new cost‑of‑living packages, a position already signalled by the chancellor.
Markets, the Strait of Hormuz and immediate pressures
Global energy markets have surged after Iran effectively halted traffic through the Strait of Hormuz following a joint US‑Israel strike on Iran on 28 February. The call between Keir Starmer and US President Donald Trump on Sunday evening (ET) lasted around 20 minutes and discussed the “essential” need to reopen the strait to resume global shipping and stabilise supplies. Around 20% of the world’s oil and liquefied natural gas typically pass through the Strait, and forecasters have already modelled higher household energy bills: Cornwall Insight projects Ofgem’s July price cap will rise from £1, 807 to £1, 973 a year for an average household, up from an April cap of £1, 641.
Immediate reactions and expert warnings
Masoud Pezeshkian, Iranian president, said “threats and terror” were strengthening Iranian unity, framing the regional escalation. Fatih Birol, head of the International Energy Agency, warned the situation was exceptionally serious and described it as like “two oil crises and one gas crash put all together, ” underlining the scale of supply disruption. A Downing Street statement said, “The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping. ” Those messages tighten the focus for the Cobra Meeting on energy routes and contingency planning.
Ministers will also face the prospect that Iran has threatened to strike Gulf neighbours’ energy and water systems if the United States attacks Iranian power plants, a threat that both raises humanitarian concerns and deepens supply‑chain risk. The Bank of England governor’s presence signals that financial stability and government bond markets will be central to deliberations in the meeting.
What happens next and the path the government will take
Officials expect the Cobra Meeting to produce immediate priorities: assessing targeted financial support measures for vulnerable households, options to secure energy supplies and contingency steps for industry and supply chains. International coordination on reopening the Strait of Hormuz and measures to protect shipping lanes will remain high on the agenda. The government will reconvene ministers and officials as new intelligence and market moves come in, with follow‑up announcements likely after further cabinet deliberation this week (ET).
As officials gather, the narrow aim is to convert urgent discussion in the Cobra Meeting into concrete steps to shield consumers and businesses from an escalating energy shock and to prepare contingency plans should regional strikes hit critical infrastructure.
