Prime Minister Keir Starmer has opened the door to a state bailout of household energy bills if the Iran crisis persists, warning that the longer the conflict continues, the more dangerous the economic fallout becomes. Speaking at Downing Street, Starmer emphasized that Britain would only join any Strait of Hormuz mission as part of a 'viable, collective plan' with US and European allies.

Starmer insisted the government would protect 'working people' from rising energy costs, claiming public finances are strong enough to support such measures. The UK prime minister spoke with Donald Trump for 15 minutes on Sunday, with Trump urging Nato countries to help keep the Strait of Hormuz open. Starmer declined to commit any Royal Navy ships to the region.

Government officials acknowledge the mounting pressure to deploy costly measures to cushion households from economic fallout. The Office for Budget Responsibility estimates that Tory ministers spent nearly £80bn on energy support after Russia's Ukraine invasion - more than 3% of a single year's GDP. Starmer is already issuing a 'legal direction' to energy companies to pass on £150 in savings per household from last year's Budget changes.