LONDON — Emergency support to help Brits grappling with rising bills should go
to “those who need it most,” Chancellor Rachel Reeves said Tuesday — all-but
ruling out a Liz Truss-style universal bailout in response to the Iran war.
Pledging to “learn the mistakes of the past,” Reeves told MPs Tuesday that,
while “contingency planning” is underway for “every eventuality,” the government
will be “responsible” with public finances in any new state intervention.
Oil and gas prices have soared since the conflict began, leading to higher fuel
prices in the U.K. and sparking fears of a sharp increase in family and business
energy bills when a regulated price cap period ends in July.
Reeves said that, while the full impact of the crisis is not yet known, “the
challenges may be significant.”
In response to the 2022 energy crisis sparked by Russia’s invasion of Ukraine,
the government of then-Prime Minister Liz Truss subsidized the bill of every
household in the country — a policy backed by the Labour Party at the time.
But Reeves today criticized the “unfunded, untargeted” 2022 package, saying it
had pushed up borrowing, interest rates and inflation.
Between 2022 and 2024, households in the top income decile received an average
£1,350 of direct energy bill support, Reeves said, contributing to national debt
“still being paid today.”
However, the chancellor stopped short of explicitly ruling out a similar
approach. She said: “Contingency planning is taking place for every eventuality
so that we can keep costs down for everyone and provide support for those who
need it most, acting within our ironclad fiscal rules to keep inflation and
interest rates as low as possible.”
The government has already announced a £53 million package of support for
households that use heating oil, which are not protected by the energy price
cap.
The majority of households that use gas and electricity will not see prices rise
until July, when the next price cap period ends. The latest expert projections
suggest the average annual bill could rise by more than £200 from current
levels.
On fuel pricing, Reeves said the government would give an update “within the
next month,” amid pressure from opposition parties to extend a longstanding five
pence tax relief on gasoline and diesel — the fuel duty cut — beyond its expiry
date in September.
U.K. gasoline prices have have risen by nearly 16 pence per liter since the war
began, while diesel has risen by more than 31 pence.
Tag - War
BERLIN — German President Frank-Walter Steinmeier on Tuesday condemned U.S.
President Donald Trump for going to war with Iran, calling the conflict a
violation of international law and warning of a transatlantic rupture comparable
to Germany’s break with Russia.
Steinmeier’s role in German politics is largely ceremonial, but his sharp
criticism of the war and the U.S. president is likely to put additional pressure
on German Chancellor Friedrich Merz, who has stopped short of other European
leaders in calling the war illegal even as he has grown increasingly critical of
what he sees as the lack of an exit strategy on the part of the U.S. and Israel.
“This war violates international law,” said Steinmeier, who is a member of the
center-left Social Democratic Party (SPD), which rules in a coalition with
Merz’s conservatives and has been more critical of the ongoing attacks. “There
is little doubt that, in any case, the justification of an imminent attack on
the U.S. does not hold water,” he added.
Steinmeier, speaking in front of an audience of German diplomats in Berlin,
criticized Trump for withdrawing from the nuclear deal with Iran during his
first term in office. The president, who served as Germany’s foreign minister
from 2013 to 2017, had helped negotiate that deal.
“This war is also — and please bear with me when I say this, as someone directly
involved — a politically disastrous mistake,” said Steinmeier. “And that’s what
frustrates me the most. A truly avoidable, unnecessary war, if its goal was to
stop Iran from developing a nuclear weapon.”
Despite the president’s largely symbolic role, his strident criticism is likely
to fuel a growing domestic debate over Germany’s stance on the Iran war and its
relationship with the U.S.
Merz and his fellow conservatives were initially far more supportive of the U.S.
and Israeli attacks on Iran than many other EU countries, arguing that Germany
shares the goal of regime change in Tehran. But as the conflict has expanded and
the economic and security effects on the EU’s biggest economy have become
clearer, the chancellor has become far more openly critical, saying the war has
raised “major questions” about Europe’s security.
Steinmeier, who refrained from criticizing Israel directly, also compared the
transatlantic rift during Trump’s second term to Germany’s divorce from Russia
in the wake of Moscow’s full-scale invasion of Ukraine in 2022.
“Just as I believe there will be no going back to the way things were before
February 24, 2022 in our relationship with Russia, so I believe there will be no
going back to the way things were before January 20, 2025 in transatlantic
relations,” Steinmeier said, referring to the day of Trump’s second
inauguration. “The rupture is too deep.”
Steinmeier then urged his country to become more independent of the U.S., both
in terms of defense and technology, arguing that such autonomy is necessary to
prevent Trump administration interference in his country’s domestic politics.
The German military “must become the backbone of conventional defense in
Europe,” he said. “In the technological sphere, our dependence on the U.S. is
even greater. This makes it all the more important that we do not simply accept
this situation.”
European consumer group Euroconsumers along with Football Supporters Europe have
filed a complaint with the European Commission accusing FIFA of abusing its
monopoly over World Cup ticket sales to impose excessive prices and unfair
conditions on fans.
The complaint, obtained by POLITICO, alleges breaches of Article 102 of the
Treaty on the Functioning of the European Union, which prohibits abuses of a
dominant market position.
“FIFA has a complete monopoly over World Cup ticket sales,” said Romane
Armangau, a spokesperson for Euroconsumers. “They are using that power to charge
prices that would not exist in a normal competitive market, while hiding
information from buyers and manipulating them into rushed decisions.”
The groups point to a range of alleged abusive practices, including limited
transparency on ticket categories and seat allocation, a “variable pricing”
system that can push prices higher over time, and the actual scarcity of tickets
advertised from $60.
“When you buy that ticket, you don’t actually know what you’re buying,” Armangau
said.
“It means attending the 2026 World Cup has become financially out of reach for
most ordinary supporters,” she added, pointing to tickets to the final that now
start at more than $4,000.
Fans can also face additional costs, including resale fees of around 15 percent,
according to the complaint. The groups further accuse FIFA of using “dark
patterns” — design and marketing tactics that create artificial urgency — to
pressure fans into buying tickets.
The filing lands as pressure on FIFA is already building in Brussels.
In an interview with POLITICO earlier this month, EU Sports Commissioner Glenn
Micallef warned of the safety risks for fans travelling to the 2026 World Cup,
citing concerns linked to the war in Iran. He said FIFA had yet to provide
renewed assurances for supporters, stressing that “since one of the hosts of
this biggest sporting event in the world is party to a war, it’s only legitimate
that assurances are given.”
Micallef also criticized FIFA’s partnership with U.S. President Donald Trump’s
“Board of Peace,” a body widely seen in Europe as an attempt to sidestep the
United Nations.
The complaint to the EU leans on a December 2023 Super League court ruling,
which said FIFA and UEFA can fall under EU competition law when they organize
and market competitions as economic activities. The filing argues that reasoning
applies here too, because FIFA is the sole seller of World Cup tickets and is
allegedly abusing that dominant position.
While Brussels has previously scrutinized sports governing bodies, targeting
FIFA’s ticketing and pricing practices would open a new front.
Euroconsumers and its partners are urging the European Commission to intervene,
including by imposing price caps and forcing greater transparency over ticket
sales.
“We are asking the Commission to act immediately with interim measures,”
Armangau said. “Once those matches are played, the harm to fans cannot be
undone.”
LONDON — Keir Starmer’s keeping Britain out of the war in Iran — but he can’t
duck the conflict’s grave economic consequences.
In a sign of growing fears about the impact of the war on Britain, the prime
minister chaired a rare meeting of the government’s emergency COBRA committee
Monday night, joined by senior ministers and Governor of the Bank of England
Andrew Bailey.
Starmer’s top finance minister, Rachel Reeves, will update the House of Commons
on the economic picture Tuesday, as an already-unpopular administration worries
that chaos in the Middle East is shredding plans to lower the cost of living and
get the British economy growing.
For Starmer’s government — headed for potentially brutal local elections in May
— the crisis in the Gulf risks a nightmare combination of a rise in energy
prices, interest rates, inflation and the cost of government borrowing that
threatens to undermine everything he’s done since winning office.
Economists are now warning that even if Donald Trump’s promise of a “complete
and total resolution of hostilities” with Iran were to bear fruit, the effects
on the British economy could still last for months.
Already there are signs of a split within Starmer’s party over how to respond.
Labour MPs want the government to think seriously about action to protect
households — but Starmer and Reeves have long talked up the need for fiscal
responsibility, and economics are warning that there’s little room for maneuver.
Fuel prices displayed at a Shell garage in Southam, Warwickshire on March 23,
2026. | Jacob King/PA Images via Getty Images
Jim O’Neill, a former Treasury minister who served as an adviser to Reeves, told
POLITICO the government should “not get sucked into reacting to every external
shock” and “concentrate on boosting our underlying growth trend.”
WHY THE UK IS SO HARD HIT
Just before the outbreak of war, there was reason for Starmer and Reeves to feel
quietly optimistic about the long-stagnant British economy. The Bank of England
had expected inflation to fall back sustainably toward its two percent target
for the first time in five years, giving the central bank the space to carry on
cutting interest rates.
With the Iran war in full flow, it was forced to rewrite those forecasts at the
Monetary Policy Committee’s meeting last week — and now sees inflation at around
3.5 percent by the summer.
The U.K. is a big net importer of energy and also needs constant imports of
foreign capital to fund its budget and current account deficits. That’s made it
one of first targets in the financial markets’ crosshairs. The government’s cost
of borrowing has risen by more than half a percentage point over the last month.
That threatens both the real economy and Reeves’ painstakingly-negotiated budget
arithmetic. Higher inflation means higher interest rates and a higher bill for
servicing the government’s debt: fiscal watchdog the Office for Budget
Responsibility estimates a one-point increase in inflation would add £7.3
billion to debt servicing costs in 2026-2027 alone.
The effect on businesses and home owners is also likely to be chilling.
Britain’s banks are already repricing their most popular mortgages, which are
tied to the two-year gilt rate. Hundreds of mortgage products were pulled in a
hurry after the MPC meeting last week, something that will hit the housing
market and depress Reeves’ intake from both stamp duty and capital gains.
Duncan Weldon, an economist and author, said: “Even if this were to stop
tomorrow, the inflation numbers and growth numbers are going to look materially
worse throughout 2026.
“If this continues for longer… it’s an awful lot more challenging and you end up
with a much tougher budget this autumn than the government would have been
hoping to unveil.”
DECISION TIME
The U.K.’s economic plight presents an acute political headache for Starmer, as
he faces a mismatch between his own party’s expectations about the government’s
ability to help people and his own scarce resources.
Energy Secretary Ed Miliband has promised to keep looking at different options
for some form of assistance to bill-payers hit by an energy price shock. A pain
point is looming in July, when a regulated cap on energy costs is due to expire
and bills could jump significantly.
One left-leaning Labour MP, granted anonymity to speak frankly, said: “They
[ministers] need to be treating this like a financial crisis. They need plans
for multiple scenarios with clear triggers for government support.”
A second MP from the 2024 intake said “it’s right that a Labour government steps
in, particularly to help the most vulnerable.”
Foreign Secretary Yvette Cooper and Chancellor of the Exchequer Rachel Reeves at
the first cabinet meeting of the new year at No. 10 Downing St. on Jan. 6, 2026
in London, England. | Pool photo by Richard Pohle via Getty Images
This demand for action is being felt in the upper echelons of the party too, as
Culture Secretary Lisa Nandy recently argued Reeves’ fiscal rules — seen as
crucial in the Treasury to reassure the markets — may need to be reconsidered if
prices continue to rise and a major support package is needed.
One Labour official said there are clear disagreements with Labour over how to
go about drawing up help and warned “the fiscal approach is going to be a
massive dividing line at any leadership election.” The same official pointed to
recent comments by former Starmer deputy — and likely leadership contender —
Angela Rayner about the OBR, with Rayner accusing the watchdog of ignoring the
“social benefit” of government spending.
Despite the pressure, ministers have so far restricted themselves to criticizing
petrol retailers for alleged profiteering, and have been flirting with new
powers for markets watchdog the Competition and Markets Authority. The
government said Reeves would on Tuesday set out steps to “help protect working
people from unfair price rises,” including a new “anti-profiteering framework”
to “root out price gouging.”
But Starmer signaled strongly in an appearance before a Commons committee Monday
evening that he was not about to unveil any wide-ranging bailout package,
telling MPs he was “acutely aware” of what it had cost when then-Prime Minister
Liz Truss launched her own universal energy price guarantee in 2022.
O’Neill backed this approach, saying: “I don’t think they should do much… They
can’t afford it anyhow. The nation can’t keep shielding people from external
shocks.”
Weldon predicted, however, that as the May elections approach and the energy cap
deadline draws nearer, the pressure will prove too much and ministers could be
forced to step in.
The furlough scheme rolled out during the pandemic to project jobs and Truss’s
2022 intervention helped create “the expectation that the government should be
helping households,” he said.
“But it’s incredibly difficult. Britain’s growth has been blown off-course an
awful lot in the last 15 years by these sorts of shocks.”
Geoffrey Smith, Dan Bloom, Andrew McDonald and Sam Francis contributed to this
report.
ROME — Italian right-wing Prime Minister Giorgia Meloni’s crushing defeat in
Monday’s referendum on judicial reform has shattered her aura of political
invincibility, and her opponents now reckon she can be toppled in a general
election expected next year.
The failed referendum is the the first major misstep of her premiership, and
comes just as she seemed in complete control in Rome and Brussels, leading
Italy’s most stable administration in years. Her loss is immediately energizing
Italy’s fragmented opposition, making the country’s torpid politics suddenly
look competitive again.
Meloni’s bid to overhaul the judiciary — which she accused of being politicized
and of left-wing bias — was roundly rejected, with 54 percent voting “no” to her
reforms. An unexpectedly high turnout of 59 percent is also likely to alarm
Meloni, underscoring how the vote snowballed into a broader vote of confidence
in her and her government.
She lost heavily in Italy’s three biggest cities: In the provinces of Rome, the
“no” vote was 57 percent, Milan 54 percent and Naples 71 percent.
In Naples, about 50 prosecutors and judges gathered to open champagne and sing
Bella Ciao, the World War II anti-fascist partisan anthem. Activists, students
and trade unionists spontaneously marched to Rome’s Piazza del Popolo chanting
“resign, resign.”
In a video posted on social media, Meloni put a brave face on the result. “The
Italians have decided and we will respect that decision,” she said. She admitted
feeling some “bitterness for the lost opportunity … but we will go on as we
always have with responsibility, determination and respect for Italy and its
people.”
In truth, however, the referendum will be widely viewed as a sign that she is
politically vulnerable, after all. It knocks her off course just as she was
setting her sights on major electoral reforms that would further cement her grip
on power. One of her main goals has been to shift to a fixed-term prime
ministership, which would be elected by direct suffrage rather than being
hostage to rotating governments. Those ambitions look far more fragile now.
The opposition groups that have struggled to dent Meloni’s dominance immediately
scented blood. After months on the defensive, they pointed to Monday’s result as
proof that the prime minister can be beaten and that a coordinated campaign can
mobilize voters against her.
Matteo Renzi, former prime minister and leader of the centrist Italia Viva
party, predicted Meloni would now be a “lame duck,” telling reporters that “even
her own followers will now start to doubt her.” When he lost a referendum in
2016 he resigned as prime minister. “Let’s see what Meloni will do after this
clamorous defeat,” he said.
Elly Schlein, leader of the opposition Democratic Party, said: “We will beat
[Meloni] in the next general election, I’m sure of that. I think that from
today’s vote, from this extraordinary democratic participation, an unexpected
participation in some ways, a clear political message is being sent to Meloni
and this government, who must now listen to the country and its real
priorities.”
Former Prime Minister Giuseppe Conte, leader of the populist 5Star Movement
heralded “a new spring and a new political season.” Angelo Bonelli , leader of
the Greens and Left Alliance, told reporters the result was “an important signal
for us because it shows that there is a majority in the country opposed to the
government.”
‘PARALLEL MAFIA’
The referendum itself centered on changes to how judges and prosecutors are
governed and disciplined, including separating their career paths and reshaping
their oversight bodies. The government framed the reforms as a long-overdue
opportunity to fix a system where politicized legal “factions” impede the
government’s ability to implement core policies on issues such as migration and
security. Justice Minister Carlo Nordio called prosecutors a “parallel mafia,”
while his chief of staff compared parts of the judiciary to “an execution
squad.”
A voter is given a ballot at a polling station in Rome, Italy, on March 22,
2026. | Riccardo De Luca/Anadolu via Getty Images
Meloni’s opponents viewed the defeated reforms differently, casting them as an
attempt to weaken a fiercely independent judiciary and concentrate power. That
framing helped turn a technical vote into a broader political contest, one that
opposition parties were able to rally around.
It was a clash with a long and bitter political history. The Mani Pulite (Clean
Hands) investigations of the 1990s, which wiped out an entire political class,
left a legacy of mistrust between politicians and the judiciary. The right, in
particular, accused judges of running a left-wing vendetta against them.
Under Meloni’s rule that tension has repeatedly resurfaced, with her government
clashing with courts, saying judges are thwarting initiatives to fight migration
and criminality.
Meloni herself stepped late into the campaign, after initially keeping some
distance, betting that her personal involvement could shift the outcome.
She called the referendum an “historic opportunity to change Italy.” In
combative form this month, she had called on Italians not squander their
opportunity to shake up the judges. If they let things continue as they are now,
she warned: “We will find ourselves with even more powerful factions, even more
negligent judges, even more surreal sentences, immigrants, rapists, pedophiles,
drug dealers being freed and putting your security at risk.”
It was to no avail, and Meloni was hardly helped by the timing of the vote. Her
ally U.S. President Donald Trump is highly unpopular in Italy and the war in
Iran has triggered intense fears among Italians that they will have to pay more
for power and fuel.
The main upshot is that Italy’s political clock is ticking again.
REGAINING THE INITIATIVE
For Meloni, the temptation will be to regain the initiative quickly. That could
even mean trying to press for early elections before economic pressures mount
and key EU recovery funds wind down later this year.
The logic of holding elections before economic conditions deteriorate further
would be to prevent a slow bleeding away of support, said Roberto D’Alimonte,
professor of political science at the Luiss University in Rome. But Italy’s
President Sergio Mattarella has the ultimate say about when to dissolve
parliament and parliamentarians, whose pensions depend on the legislature
lasting until February, could help him prevent elections by forming alternative
majorities.
D’Alimonte said Meloni’s “standing is now damaged.”
“There is no doubt she comes out of this much weaker. The defeat changes the
perception of her. She has lost her clout with voters and to some extent in
Europe. Until now she was a winner and now she has shown she can lose,” he
added.
She must now weigh whether to identify scapegoats who can take the fall —
potentially Justice Minister Nordio, a technocrat with no political support base
of his own.
Meloni is expected to move quickly to regain control of the agenda. She is due
to travel to Algeria on Wednesday to advance energy cooperation, a trip that may
also serve to pivot the political conversation back to economic and foreign
policy aims.
But the immediate impact of the vote is clear: A prime minister who entered the
referendum from a position of strength but now faces a more uncertain political
landscape, against an opposition newly convinced she can be beaten.
HOUSTON — Oil companies and the world’s largest energy consumers face a
significant challenge to rebuild global petroleum supply chains and inventories
once the critical Strait of Hormuz bottleneck opens, Chevron CEO Mike Wirth said
Monday.
“We’ve got a lot of oil and gas now that is not flowing into the market,” Wirth
said at the CERAWeek by S&P Global conference in Houston. “Physical supply
chains don’t respond immediately, so even if the strait opens at some point, it
will take time to rebuild inventories of the right grades of crude and the right
types of fuel.”
Wirth cautioned that Iran’s attacks on oil tankers and the broader damage of the
Middle East war did greater damage to oil and gas markets than the
Russia-Ukraine war. Asian nations are running low on diesel and jet fuel. The
war has held up deliveries of LNG, fertilizer and other products.
Part of the challenge, Wirth said, will be taking a read of the damage. It’s
unclear how much production has been shut in, Wirth said, and how badly some
facilities were damaged.
At the same event, Energy Secretary Chris Wright reiterated to oil executives
that he anticipated the global disruption to oil and gas flows would be
“short-term,” but he encouraged companies to ramp up production.
“Markets do what markets do,” Wright said. “Prices went up to send signals to
everyone that can produce more: ‘Please, produce more.’”
French far-right leader Marine Le Pen hailed Hungary’s Viktor Orbán for blocking
a €90 billion EU loan for Ukraine.
“I’d prefer it if we didn’t have to wait for other countries to take good
decisions,” Le Pen told reporters on a trip to Budapest for a meeting of the
Patriots for Europe group, of which her National Rally and Orbán’s Fidesz are
members.
Le Pen argued that France could no longer afford to support Ukraine’s war effort
due to its high deficit and debt levels.
“France is ruined, our public finances don’t allow us today to make loans we
know won’t be reimbursed,” she said. “France has to become reasonable … and keep
the money for French citizens.”
Also in Hungary for the meeting are Dutch far-right leader Geert Wilders and
Italy’s Deputy Prime Minister Matteo Salvini.
Hungary goes to the polls on April 12, and the National Rally leader lent Orbán
her firm backing on Monday on X, saying she was “very honored” to support him.
On Saturday, Hungary held a European edition of the Conservative Political
Action Committee (CPAC), which included a video message from U.S. President
Donald Trump, who reiterated his “complete and total” backing for Orbán.
Le Pen was not present at the CPAC gathering and said she wanted France to stay
at a “distance” from the world’s great powers. “It doesn’t mean we don’t respect
them, it just means we defend our interests and they defend theirs,” she said,
adding that Trump’s tariff war against Europe proved why she needed to take this
stance.
HOW TWO WARS ARE PULLING EUROPE AND THE US APART
The EU is worried President Trump could abandon Ukraine if the bloc doesn’t
support him in the Middle East.
By NICHOLAS VINOCUR
in Brussels
Illustration by Natália Delgado/ POLITICO
The biggest fear of European leaders is that Donald Trump’s war in Iran will
lead him to abandon Ukraine.
Governments are terrified that the U.S. president could retaliate against
America’s European allies for spurning his appeals for assistance in the Middle
East, primarily by cutting off what’s left of U.S. help for Kyiv, according to
four EU diplomats with knowledge of their discussions. As they scramble to avoid
a permanent break in the transatlantic relationship, leaders hope their offer of
limited support for his action against Tehran will suffice to convince Trump to
stay the course in the conflict with Russia.
The war in Iran “must not divert our attention from the support we give
Ukraine,” French President Emmanuel Macron said at the end of last week’s EU
summit in Brussels.
It’s easy to see why EU leaders are so anxious. In recent days Trump has
repeatedly blasted them for failing to do more to help him unblock the Strait of
Hormuz, the shipping route used by about 20 percent of the world’s oil that has
effectively been closed by Iran. He has also explicitly linked continued U.S.
involvement in NATO to the Middle East conflict.
“NATO IS A PAPER TIGER!” he railed in a Truth Social Post over the weekend.
“They complain about the high oil prices they are forced to pay, but don’t want
to help open the Strait of Hormuz … COWARDS,” he concluded. “[W]e will
remember.”
At the same time, further deepening fears about the transatlantic alliance,
Moscow offered Washington a quid pro quo under which the Kremlin would stop
sharing intelligence with Iran if Washington ceased supplying Ukraine with intel
about Russia, POLITICO revealed on Friday.
While the U.S. declined the offer, according to two people familiar with the
U.S.-Russia negotiations, the fact it was proffered in the first place points to
a possible tradeoff between U.S. involvement in Ukraine and the Middle East.
“There’s a crack right now emerging between, you know, Europe and the U.S.,
which, again, as an avid pro-American and transatlanticist, I lament,” Finnish
President Alexander Stubb said in an interview with the Daily Telegraph. “But
it’s a reality that I have to live with. And I obviously try to salvage what I
can.”
MISSILES LIKE CANDIES
Governments are concerned that the war in Iran is using up missiles and air
defense munitions that Kyiv needs to protect itself against Russia, the four EU
diplomats, who were granted anonymity to discuss sensitive diplomatic exchanges,
told POLITICO.
“When you see what Trump did on Greenland, how he cut off intelligence-sharing
with Ukraine on a whim, there’s always a risk [that Trump could remove U.S.
support for Ukraine],” one of the diplomats said.
“The concern is obviously that the Middle East is taking attention away from
Ukraine,” added a second diplomat from a mid-sized EU country. “The Emiratis are
shooting out Patriot [air defense missiles] like candies, whereas Ukraine
desperately needs them. It can’t become an either-or situation” in which the
U.S. only has enough bandwidth for one conflict and abandons Ukraine, the
diplomat added.
Ukrainian President Volodymyr Zelenskyy has been explicit about the risk of such
a tradeoff, telling the BBC on Thursday that he had a “very bad feeling” about
the impact of the Middle East war on Ukraine. He lamented the fact that as the
war goes on, U.S.-led peace negotiations between Ukraine and Russia are being
“constantly postponed” in what the Kremlin calls a “situational pause.”
Ukrainian President Volodymyr Zelenskyy is pictured at Moncloa Palace in Madrid,
Spain on March 18, 2026. | Alberto Gardin/SOPA Images/LightRocket via Getty
Images
Ukrainian negotiators traveled over the weekend to the U.S. for talks with
Trump’s envoys, Steve Witkoff and Jared Kushner. The latter praised the talks as
“constructive” in a post on X, but gave no hint of when negotiations with Russia
would resume.
DAMAGE CONTROL
European leaders, including France’s Emmanuel Macron, Britain’s Keir Starmer and
NATO Secretary-General Mark Rutte, are ramping up efforts to show they support
the U.S. president’s goal of freeing up the Strait of Hormuz.
In a now familiar role, Rutte has been outspoken in praising Trump’s efforts.
The former Dutch prime minister last week called the destruction of Iran’s
military capacity by the U.S. and Israel “very important,” linking it to
“European security” at a time when some EU leaders, like Spanish Prime Minister
Pedro Sanchez, have criticized the war as “illegal.”
Macron has been more circumspect in public, but active behind the scenes. In two
separate calls with Trump before last Thursday’s gathering of EU leaders, the
French president assured his U.S. counterpart that France would help clear the
Strait when conditions allow, according to comments from Trump himself and a
third EU diplomat who was briefed on the calls.
“This is about managing the man,” the diplomat said.
In the early hours of Friday, Macron — who has otherwise pledged to send a naval
detachment to the Strait of Hormuz after the hot phase of the war dies down —
said France was pursuing the aim of freeing it up via the United Nations. In
response to a question from POLITICO at the European Council on Thursday, the
French leader said Paris intends to “sound out its main partners” about tabling
a resolution in the Security Council on securing freedom of navigation in the
vital waterway.
Trump is no fan of the United Nations, but he could see an advantage to a U.N.
Security Council resolution that forms the basis for a broader coalition to free
up the Strait, a fourth EU diplomat said.
The southern suburbs of Beirut after an Israeli airstrike on March 10, 2026. |
Fadel Itani/AFP via Getty Images
The U.K.’s Starmer is also doing more to help Trump in the Middle East.
Following reports that Iran had fired a ballistic missile at the Diego Garcia
U.S.-U.K. base in the Indian Ocean, Starmer gave the U.S. a green light to use
British bases to launch strikes on Iranian sites targeting the Strait of Hormuz.
Previously he had only granted permission for the bases to be used for defensive
strikes.
Starmer was also the main organizer of a statement signed by seven EU and allied
countries (the United Kingdom, France, Germany, Italy, the Netherlands, Canada
and Japan) in which they expressed their “readiness to contribute to appropriate
efforts to ensure safe passage through the Strait.” Asked about the intent of
this statement, which doesn’t promise any immediate material help, the third
diplomat said: “It’s part of the same effort. We need to show Trump we are
active in the Middle East. It’s in our interests, but also in Ukraine’s.”
Such pledges remain vague for now. Macron and German Chancellor Friedrich Merz
have both asserted they have no intention of being drawn into the war in Iran.
But as far as Trump is concerned, “appearances matter — sometimes more than
substance,” said the same diplomat.
Ivo Daalder, a former U.S. ambassador to NATO, is a senior fellow at Harvard
University’s Belfer Center and host of the weekly podcast “World Review with Ivo
Daalder.” He writes POLITICO’s From Across the Pond column.
Like many, I used to believe that former U.S. President George W. Bush’s
decision to invade Iraq in 2003 was the biggest strategic mistake America had
made, at least since the Vietnam War.
That is, until now.
U.S. President Donald Trump’s decision to join Israel in a war against Iran is a
far bigger strategic error, and one with far bigger strategic consequences. The
reasons for this are many, ranging from the immediate impact on the region and
the global economy to the longer-term upshots for Russia and China, as well as
the repercussions for U.S. alliances and America’s global standing.
That much is already clear — and we’re only three weeks in.
Let’s start with the similarities: Much like the Iraq War, the war against Iran
began based on the presumption that the regime in power would swiftly fall and
that a new, more moderate and less antagonistic one would take its place. In
both instances, the idea was to remove the greatest destabilizing threat in the
Middle East — Saddam Hussein’s regime in the initial case, the theocratic
dictatorship in Tehran in the latter — through the swift and decisive use of
military force.
But while Bush understood that defeating a regime required ground forces, it
seems Trump simply hoped that airpower alone would suffice. As a result,
Hussein’s regime fell swiftly — though Bush did vastly underestimate what would
be required to rebuild a stable, let alone a democratic, Iraq in its place. But
the Iranian government, as U.S. intelligence officials themselves have
testified, “appears to be intact” despite Israel killing many of its key
political and security leaders through targeted strikes.
Focusing on the region at large, Bush’s misjudgment eventually contributed to a
large-scale insurgency, which strengthened Iran’s influence in Iraq and the
wider Middle East. In contrast, Trump’s miscalculation has left in place a
regime that, aside from assuring its own survival, is now singularly focused on
inflicting as much damage on the U.S. and its allies as it possibly can.
Iranian drones and missiles have already attacked Israel and the Gulf states,
targeted critical energy production facilities and effectively closed the Strait
of Hormuz, which hosts one-fifth of the world’s oil and gas export transits.
The Salalah oil storage fire in Oman is pictured on March 13, 2026. | Gallo
Images/Orbital Horizon/Copernicus Sentinel Data 2026
Less than a month in, the world is now witnessing the largest oil and gas
disruption in history. And as the fighting escalates to include gas and oil
production infrastructure, the global economic consequences will be felt by
every single country for months, if not years, to come — even if the conflict
were to end soon.
The damage that has already been inflicted on the global economy is far greater
than the economic consequences of the Iraq War in its entirety.
But that’s not all. Geopolitically, the U.S.-Israel war with Iran will also have
far greater reverberations than the war in Iraq ever did.
For one, the Bush administration spent a lot of time and effort trying to get
allies on board to participate in and support the war. It didn’t fully succeed
in this, as key allies like Germany and France continued opposing the war. But
it tried.
Trump, by contrast, didn’t even try to get America’s most important allies on
board. Not only that, he even failed to inform them of his decision. And yet,
when Iran responded predictably by closing the Strait of Hormuz, the U.S.
president then demanded allies send their navies to escort tankers — despite the
U.S. Navy so far refusing to do so.
And while it’s true that Iraq left many U.S. allies — even those that joined the
war, like the U.K. — deeply scarred, Iran has convinced U.S. allies they can no
longer rely on the U.S., and that Washington is now a real threat to their
economic security.
That, too, will have a lasting impact well beyond anything the war in Iraq did.
Finally, the fact remains that when Bush decided to invade Iraq, Russia and
China were still minor global powers. Russian President Vladimir Putin was only
just starting his effort to stabilize the economy and rebuild Russia’s military
power, while China had just joined the World Trade Organization and was still a
decade or more away from becoming an economic superpower. In other words,
America’s blunder in Iraq occurred at a time when the strategic consequences for
the global balance of power were still manageable.
Trump’s Iran debacle is occurring at a time when China is effectively competing
with the U.S. for global power and influence, and Russia is engaged in the
largest military action in Europe since the end of World War II.
A woman sifts through the rubble in her house in Tehran, Iran on March 15, 2026
after it was damaged by missile attacks two days before. | Majid Saeedi/Getty
Images
Both stand to benefit greatly.
Russia is the short-term winner here. Oil prices are rising, generating more
than $150 million per day in extra income for Moscow to feed its war machine.
The U.S. is relaxing its sanctions against Russia in a vain attempt to stall
prices from ballooning at the pump. All the while, Ukraine is being left to
contend with Russia’s missile and drone attacks without the advanced defensive
weaponry that’s now being used to protect Israel and the Gulf instead.
China, meanwhile, is watching as the U.S. diverts its military forces from the
Indo-Pacific to the Middle East, where they will likely remain for months, if
not years. These forces include a carrier strike group, a Terminal High Altitude
Area Defense anti-missile system from Korea, and a Marine Expeditionary Force
from Japan. And while a disruption in oil and gas supply will be a short-term
problem for Beijing too, China’s rapid transition to renewables and close
alignment with energy-rich Russia will leave it well placed to confidently
confront the future.
Bush and Trump both came to office determined to avoid the mistaken wars of
their predecessors. Nevertheless, they both embarked on military adventures fed
by a hubristic belief in American power.
But while the U.S. was strong enough — and its adversaries still weak enough —
to recoup much of the damage inflicted by Bush’s war, the war unfolding in Iran
today will leave behind an America that will have lost much of its global power,
standing and influence, destined to confront rising adversaries all on its own.
LONDON — Donald Trump has berated Keir Starmer over the Iran war. But the U.S.
president might just have bought the British leader a little more time in the
job.
Trump blasted Starmer as “no Winston Churchill” for his limits on the U.S.
launching offensive attacks from British bases — and has helped stoke criticism
from opposition parties at home about an indecisive U.K. administration.
But the global tumult from the U.S.-led war in the Middle East has had one
counter-effect: strengthening, for now, Starmer’s precarious domestic position.
Numerous errors and climbdowns — plus voter frustration at not seeing the
“change” promised in the 2024 election — has left Starmer one of the most
unpopular British prime ministers on record.
Missteps and a failure to bring political troops with him on a host of
controversial issues have also left Starmer sorely lacking support among his own
MPs. Whether he will survive past a difficult round of local elections on May 7
is an open talking point at Westminster.
Would-be replacements, including Health Secretary Wes Streeting and former
Deputy Labour Leader Angela Rayner, have made little secret of their hope to
stand if a contest arises.
But external events have a habit of changing the course of politics. And a sense
is growing that the crisis in the Middle East is dampening the chatter about
removing the prime minister.
“Iran has bought him time,” said one Labour official, who like others in this
piece spoke on the condition of anonymity to discuss internal party tensions.
A Labour frontbencher, who in the past predicted Starmer would be out after the
spring elections, said the war is “making colleagues think again about changing
leader,” adding: “It focuses minds on who we want leading the country at a time
of crisis. Would we really want Angela or Wes sitting around the NATO table?”
Britain’s involvement entered a new stage on Friday, when the U.K. said the U.S.
could use British bases to bomb Iranian missile sites attacking commercial
shipping the Strait of Hormuz. Downing Street insisted this fell within the
existing scope of “defensive” action that Starmer approved on Mar. 1.
There is broad agreement among Labour MPs that Starmer has taken the correct
approach to the conflict — refusing to let jibes from Trump rile him while
sticking to his position that the initial U.S.-Israel offensive action was wrong
but that allies need defending from Iranian blowback.
“Most other potential prime ministers, Labour or otherwise, wouldn’t have had
the backbone to stand firm, and would now be explaining to a furious British
public how we were disentangling ourselves from Trump’s war and all the ensuing
economic challenges we will face,” said one senior government official.
The same person sensed that even among rival leadership camps “there is an
acknowledgement that this war changes things. It would be a terrible time to be
seen to be playing politics by any contender.”
Health Secretary Wes Streeting speaks to the press at the University of Kent in
Canterbury, England on March 19, 2026. | Dan Kitwood/Getty Images
Indeed, one of Streeting’s allies accepted that there won’t be a leadership
challenge while the war continues, adding that being a statesman on the world
stage is “what Keir is good at.”
Even disgruntled MPs have been telling each other “there’s no way there could be
a challenge at a time like this,” one noted, while Conservative MPs have also
discussed how the war has shored up the Starmer position.
But the calculation among plotters is still likely to come down to weighing the
state of the war against how bad the verdict is from voters at the May local
elections. “He’s played a blinder and is exactly where most of the country is,”
one Starmer critic said. “But if it’s a bloodbath in May it would still be
tricky. And it feels like everyone is on maneuvers in Westminster.”
That is acknowledged even in government. One minister said the outcome will be
difficult to predict if election results are “catastrophic,” while another said:
“There is still a feeling that things are untenable and could come to a head
quite quickly.”
Cabinet ministers including Chancellor Rachel Reeves have been contacting junior
ministers in recent weeks encouraging them to rally round the prime minister,
said one of those on the receiving end. They described the outreach as one of
the “save Keir calls.”
Some note, too, that those arguing that a leader cannot be changed during a war
have forgotten lessons from the past. “The center [of government] will argue
people shouldn’t move at a time of war, but we changed leaders during two world
wars,” said another government frontbencher. “If things are really bad in May, I
don’t think it will be the argument that stops people.”
Even the ongoing Ukraine war serves as a lesson. There was murmuring among
Conservative MPs that it would be wrong to oust their then-Prime Minister Boris
Johnson amid war in Europe. But he was gone six months after the BBC reported it
in 2022.
The opposition is also not giving Starmer the grace he afforded to Johnson as
the Ukraine crisis mounted. “Starmer is in office but not in power and that is
making Britain’s response to this conflict confused and incoherent,” a
Conservative spokesperson said.
In the end, it could be Starmer’s response to bad election results, not his
reaction to a war beyond his control, that really seals his fate. “Clearly we
are working hard to secure success in the May elections. However, following any
election, it is right that there is a full assessment of the outcome,” said
Labour MP Rachael Maskell, who has called for Starmer to quit in the past.
“There are always circumstances where a case can be made that ‘now is not the
right time’ but what is important is that there is recognition of the outcome,
the reasons why and the remedy that is required.
“Let’s see where we get to in seven weeks’ time,” she added.