Sir Keir Starmer has welcomed a “hugely significant moment” in the conflict in the Middle East, after the “breakthrough” deal between the US and Iran was announced.
US President Donald Trump said the agreement meant “oil will flow” freely once again through the Strait of Hormuz, the vital shipping route out of the Persian Gulf.
News of a peace deal emerged overnight, with mediators in Pakistan announcing that an initial agreement could be signed electronically within 24 hours, followed by detailed talks next week.
The deal would bring to an end a four-month war in which Tehran has used a blockade of the Strait as an economic weapon, leading to fuel shortages in some countries, disruption to agricultural fertiliser supplies, and price spikes at Britain’s petrol forecourts and airports.
The Prime Minister welcomed news of a deal at a press conference in No 10 Downing Street on Monday morning.
Sir Keir told reporters: “I want first to welcome the breakthrough reached last night between the US and Iran, and I congratulate President Trump, the mediators from Pakistan and Qatar, and all those involved.
“This is a hugely significant moment.
“We have long called for de-escalation, and it is vital that all parties seize this opportunity to secure stability in the region and restore freedom of navigation in the Strait of Hormuz, which in turn will ease the economic pressures felt by people here in the United Kingdom and around the world
“We will now work closely with our partners to support this agreement and to ensure it turns into a durable, lasting peace.”
Sir Keir also acknowledged there had been several false starts on a peace deal in recent weeks, but suggested he believed the latest announcement was a true breakthrough.
“This is an agreement. I do think it’s significant,” he said.
Britain and its allies are ready to help protect the Strait of Hormuz from future shocks, Sir Keir also signalled.
He told reporters: “You will know that we took preparatory action as a coalition of countries, led by myself and President Macron, to put together those countries that are prepared to do some of the reassurance work that’s needed when we get to a moment like this to help get vessels through the Strait of Hormuz.
“We’ve got military planning behind that, so I hope now we can play our part in relation to that.”
Oil prices fell sharply after the announcement of a peace deal, with Brent Crude, the global benchmark, dropping more than 5% on Monday to just over 82 US dollars a barrel, marking its lowest level for over three months.
Stock markets also jumped higher in Europe and Asia as investors breathed a sigh of relief.
Mr Trump was celebrating his 80th birthday at a sports event at the White House when he confirmed a peace deal had been agreed.
Writing on his social media platform Truth Social, the president said: “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!
“I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
The peace deal includes provision for Israel ceasing its operations against Hezbollah in Lebanon, something which Israel has yet to officially comment on.
