British Prime Minister Keir Starmer has called an emergency COBRA meeting on Monday to address potential economic risks to the United Kingdom stemming from the ongoing Iran war. According to The Guardian, Chancellor of the Exchequer Rachel Reeves and Bank of England Governor Andrew Bailey are among the key participants. The meeting will assess the possible effects on households, businesses, energy security, and supply chains, as well as international responses.

The heightened tension follows Iran’s warning that it would target Gulf neighbors’ energy and water systems if U.S. President Donald Trump carries out threats against Iranian power plants. Reuters reported that the UK is closely monitoring the situation amid concerns over its heavy reliance on imported gas, persistent inflation, and fiscal strain, which have accelerated the fall in government bond prices.

Reeves noted that it remains difficult to predict the war’s full impact on the British economy. While rejecting broad cost-cutting measures for now, she said targeted assistance options are under consideration.