Speaker A
as the conflict enters its fourth week, attacks have continued around the region, including in Iran and Israel. Our World News correspondent, Joe Inwood, has our first report.
Iran launches ballistic missile attacks on Israel and US targets, escalating regional conflict and impacting global economy via Strait of Hormuz closure.
Key Takeaways
- Iran's missile capabilities exceed previous estimates, posing a broader regional and European threat.
- The conflict is causing significant economic disruption, especially through the closure of the Strait of Hormuz.
- Rising energy and food costs are increasing inflation and financial pressures on households in the UK.
- The UK government is focused on mitigating domestic economic impacts without escalating military involvement.
- International efforts aim to contain the conflict and protect global shipping routes.
Summary
- Iran fired ballistic missiles at Israel's nuclear facility in the Negev desert and at the UK-US base on Diego Garcia, demonstrating extended missile range.
- The missile attacks mark an escalation in the ongoing conflict, with Iran retaliating for strikes on its nuclear sites.
- The US destroyed a key Iranian underground military facility, degrading Iran's ability to threaten navigation in the Strait of Hormuz.
- The Strait of Hormuz has been effectively closed to most commercial shipping for nearly three weeks, impacting global oil, LNG, and fertilizer supplies.
- Rising energy and freight costs are driving up food production costs in the UK, with farmers warning of higher food prices.
- The Bank of England has warned that inflation could rise further due to the conflict's economic impact, affecting mortgage rates and borrowing costs.
- The UK government is prioritizing the cost of living crisis and plans an emergency meeting with the Bank of England to address household budget pressures.
- The Foreign Secretary accused Iran of recklessly attempting to hijack the global economy through its actions.
- G7 countries, including the UK, seek a swift end to the conflict while avoiding further military escalation.
- The UK supports defensive actions in the Persian Gulf but rejects involvement in offensive military operations.
Full Transcript — Download SRT & Markdown
Speaker B
This does not feel like a war that's de-escalating.
Speaker B
This afternoon, the Israeli town believed to host their nuclear arsenal was hit by an Iranian ballistic missile.
Speaker B
Retaliation, Tehran said, for a strike on one of their nuclear facilities. It was not the only attack that expanded the scope of this war.
Speaker B
Iran fired two ballistic missiles at the UK-US base on Diego Garcia, around 2,400 miles from the Iranian coast.
Speaker B
Although neither hit their target, it is far further than their missiles were thought to be able to reach.
Speaker C
This is we've seen the latest in Iran's reckless strikes aiming at Gulf partners.
Speaker C
At international shipping, at allies and British interests as well.
Speaker C
And that is why we have continued to support defensive action.
Speaker B
There had been some speculation as to whether the missiles could have reached that far.
Speaker B
The Israelis say the threat was real.
Speaker D
Iran launched a two-stage intercontinental ballistic missile with a range of 2,500 miles towards an American target on the island of Diego Garcia.
Speaker D
These missiles were not intended to hit Israel.
Speaker D
Their range reaches the capitals of Europe.
Speaker B
The full scale and capacity of Iran's ballistic missile program has long been the subject of debate.
Speaker B
Today, some of those questions have been answered.
Speaker E
It shows that the radius of action Iran has is much bigger than people thought.
Speaker E
It brings potentially European cities into target range.
Speaker E
Unlikely as I think that is at the moment, and it's certainly complicated the job of missile defense across that area and focuses the thinking of European capitals. It also shows that Iran is able still to surprise the US and Israel, I think, three weeks into this conflict.
Speaker B
While the missile threat may cause the most alarm, it is the war's economic cost that is more significant.
Speaker B
That comes primarily from the effective closure of the Strait of Hormuz.
Speaker B
Today, the US said they destroyed a key Iranian base.
Speaker F
We not only took out the facility, but also destroyed intelligence support sites.
Speaker F
Iran's ability to threaten freedom of navigation in and around the Strait of Hormuz is degraded as a result.
Speaker B
But Tehran says it's not just military targets the US and Israel are striking. This was the port of Bushehr, near the strategically important Kharg Island.
Speaker B
Donald Trump has repeatedly said that Iran's military has been all but destroyed.
Speaker B
And that he may soon call an end to this war, but today's developments suggest that Iran has no intention of letting Donald Trump declare a quick victory. Joe Inwood, BBC News.
Speaker A
Well, as we heard, the US said their Iran's ability to threaten ships in the Strait of Hormuz has been degraded.
Speaker A
After the US bombed an underground military facility this week, but the vital channel has been effectively closed to most commercial shipping for nearly three weeks now, and that is impacting the cost of living.
Speaker A
Today, the National Farmers Union warned that food prices in the UK are likely to rise.
Speaker A
Here's Esme Carr.
Speaker G
The reason the conflict in the Middle East is having such significant economic repercussions is largely down to this, the Strait of Hormuz, a key shipping channel where a fifth of the world's oil and liquefied natural gas or LNG usually passes through.
Speaker G
And a third of global fertilizer supplies.
Speaker G
There's now a warning on how that squeeze is filtering through to farming and food production, putting pressure on supply chains which farmers say will lead to higher costs.
Speaker H
Obviously increased freight costs because of the massively increased energy costs and fuel prices.
Speaker H
So that's going to be a direct impact that's going to happen immediately for things like our glasshouse production of peppers, cucumbers, tomatoes.
Speaker H
Gas may be 30% of the production costs.
Speaker H
And if you haven't got that all hedged, it's more than doubled.
Speaker H
So significant cost increases there.
Speaker H
And farmers are making such low returns on the product that we're producing that we cannot absorb these costs.
Speaker G
Food prices are a key component of overall inflation and the Bank of England's warned that this new shock to the economy could lead to inflation going up.
Speaker G
That's brought with it uncertainty over interest rates too, with the mortgage market already responding.
Speaker G
Since the start of the conflict, the average cost of a fixed rate mortgage has risen.
Speaker G
And more than 1,400 deals around a fifth of the market have been withdrawn. Today we learned almost 700 of those were pulled after the bank's decision to hold interest rates on Thursday.
Speaker G
From food to fuel, concerns growing over rising prices.
Speaker G
Today the Foreign Secretary accused Iran of a reckless attempt to hijack the global economy. The Prime Minister's expected to hold an emergency meeting next week with the cabinet and the governor of the Bank of England to discuss how to deal with the effects of the war on UK household budgets.
Speaker A
Our business reporter Esme Carr there, well, let's pick up on that with our political correspondent Damian Grammaticas. So that meeting coming up this week, what is likely to be discussed, Damian?
Speaker I
Jane, the Foreign Secretary already saying today that the impact on the cost of living for families here is the government's top domestic priority.
Speaker I
And if you step back and think, before this war, the government was hoping that this would be a period.
Speaker I
When it would have more of a story to tell about falling inflation and falling interest rates.
Speaker I
And the opposite is now predicted.
Speaker I
So that meeting this week, yes, looking at probably household energy prices, we already have, of course, the energy cap that's coming down in a few weeks, support for those using heating oil.
Speaker I
But what to do if there are sustained price rises in future, universal help or targeted help?
Speaker I
That's the kind of thing we think they might be looking at food prices mentioned there, the governor of the Bank of England present.
Speaker I
Signals that things like household borrowing, business borrowing, government borrowing costs all in the spotlight as well.
Speaker I
Uh, though this shows why the government is so keen to see an end to this, while G7 countries have said today, including the UK, they want this end quickly, why the government has agreed just yesterday that the US can now target shipping and try to protect shipping in the Persian Gulf, the Strait of Hormuz.
Speaker I
But it's also why the UK government does not want to get further drawn into the conflict.
Speaker I
And says absolutely it will not be getting in offensive actions.
Speaker I
Doesn't want to see that spiral continue.
Topics:IranIsraelballistic missilesStrait of HormuzDiego Garcianuclear facilityMiddle East conflictUK economyinflationglobal shipping
