Starmer to chair COBRA meeting over Iran war's impact on the economy, Sky News understands

Sir Keir Starmer is to chair a COBRA meeting today, Sky News understands.

Cabinet ministers are expected to join him, including the chancellor, foreign secretary, energy secretary, as well as the governor of the Bank of England, to discuss the cost-of-living impacts of the ongoing Iran war and plans to help households.

COBRA meetings are the government's regular way to respond to a national emergency.

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The prime minister last chaired a COBRA meeting on Thursday to discuss the UK's response to Iranian strikes on energy infrastructure in the Gulf. He also chaired a meeting in late February to discuss the initial US-Israeli strikes on Iran.

On Sunday, Sir Keir spoke to the US president about the need to reopen the Strait of Hormuz.

A Downing Street spokesperson 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.

"They agreed that reopening the Strait of Hormuz was essential to ensure stability in the global energy market.

"They agreed to speak again soon."

The call lasted for around 20 minutes and was constructive, it is understood.

It comes as the war threatens to push up energy costs and inflation.

Leading forecaster Cornwall Insight has predicted Ofgem's July energy price cap will rise from £1,807 to £1,973 a year for an average household.

That's a rise of £332 from April's cap of £1,641.

The Iran war has seen global oil and gas prices rise rapidly, as the Strait of Hormuz in the Gulf has been effectively closed by the threat of Iranian strikes.

Around 20% of the world's oil and liquefied natural gas supplies typically pass through the Strait.

Meanwhile, economists are predicting inflation could rise to as high as 5% this year - it was previously expected to fall back to the 2% target before the war.

Interest rates could also increase.

'No need to ration fuel', cabinet minister tells Sky News

Speaking to Sky News on Sunday, Housing Secretary Steve Reed rejected suggestions the UK would run out of fuel amid the ongoing conflict.

"There's no need to ration fuel," Mr Reed told Sunday Morning with Trevor Phillips.

Mr Reed added that while "there's always a contingency plan" for fuel supplies, right now it is not needed.

"People should go around and buy their fuel just like they always would. If the situation were to change, then the government would look at what was required in that circumstance," he said.

"We did intervene when it came to heating oil because we saw the prices escalating and people were seeing their bills doubling and tripling overnight. We can't have that. So we stepped in to support people."

The government previously announced a £53m support package for the poorest users of heating oil last Monday, which is not covered by the price cap.

Read more from Sky News:
Why war could be calamitous for economy
Energy bills to rise hundreds of pounds to 3-year high
Changes in April that will affect your money

Our people and politics correspondent Nick Martin says that during fuel crises, perception can become reality.

He says the government is striking a delicate balance between sounding credible, but calm enough to avoid triggering panic.

Panic buying over fears of shortages in both 2021 and 2000 caused fuel to run out at many forecourts - despite there being no actual shortage of fuel then. Instead, there were issues with lorry drivers.

Conservative Sir James Cleverly told Trevor Phillips that the government should respond to the crisis by cancelling planned increases in fuel duty, and by opening up new oil and gas fields in the North Sea.

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