London and the UK weigh response as US strikes hit Iran’s nuclear sites

The UK government and financial markets in London responded warily to the news of US airstrikes on Iran’s nuclear sites, with officials calling for restraint while investors braced for potential economic fallout. The attack has raised concerns over escalating tensions in the Middle East and the impact on global oil supplies, trade, and security.

Prime Minister Keir Starmer held emergency meetings with senior ministers and security officials to assess the situation. While the UK has historically supported US efforts to curb Iran’s nuclear programme, Downing Street emphasised the need for diplomatic solutions. Foreign Secretary David Lammy stated that the UK was in “close contact with allies” but stopped short of endorsing the military action, reflecting a cautious stance.

In the City of London, markets reacted swiftly. The FTSE 100 initially dipped before stabilising, with energy stocks surging as oil prices climbed. BP and Shell saw gains, while airlines and travel-related stocks fell on fears of higher fuel costs and regional instability. The pound remained steady against the dollar, though analysts warned of potential volatility if the crisis deepens.

Security was tightened around key infrastructure, including the British embassy in Tehran and major transport hubs in London. The Metropolitan Police confirmed increased vigilance but said there was no immediate threat to the UK. Meanwhile, protests outside the US embassy in London drew small crowds, with demonstrators condemning the attack as an escalation.

British businesses with ties to the Middle East are assessing risks to supply chains and operations. The UK imports a significant portion of its oil from the region, and prolonged conflict could drive up energy costs, exacerbating inflationary pressures. The Bank of England, already navigating a fragile economy, may face tougher decisions if oil shocks disrupt its monetary policy plans.

For now, the UK’s response remains measured, balancing alliance commitments with calls for de-escalation. As the situation develops, London’s political and financial leaders are preparing for potential ripple effects—both at home and abroad.

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